S&P rates Federal-Mogul loan B

Standard & Poor's said it assigned Federal-Mogul Holdings Corp. a B corporate credit rating.

The outlook is negative.

At the same time, the agency assigned the company's proposed $500 million senior secured term loan B due 2018 and $2.1 billion senior secured term loan C due 2021 a B issue-level rating with a recovery rating of 4, indicating an expectation for average (30%-50%) recovery for lenders in the event of a payment default.

The company plans to use proceeds from the transaction to refinance existing term loans issued by subsidiary Federal-Mogul Corp. (B/negative/--).

S&P plans to withdraw the corporate credit rating on Federal-Mogul Corp. and the issue-level ratings on the refinanced debt upon completion of the proposed transaction.

The B corporate credit rating on Federal-Mogul reflects the agency's assessment of the business risk profile as "weak" and its financial risk profile as "highly leveraged."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.