S&P lowers Exide recovery

Standard & Poor's said it revised its recovery rating on Exide Technologies' senior secured notes downward to 4 from 3. The agency affirmed the B issue rating on the notes.

The 4 recovery rating indicates an expectation for average recovery for noteholders following a payment default. The agency said the reduced recovery expectation results from S&P's lower assumption of gross enterprise value at emergence, given Exide's recent weaker-than-expected operating performance.

S&P said its views is consistent with the expectation that Exide's restricted ability to recover rising costs by raising prices will limit prospects for any meaningful margin expansion, especially if aftermarket demand softens further, coupled with the ongoing challenges of executing several restructuring actions.

The B corporate credit rating and negative outlook remain unchanged.

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