S&P lowers Filtration loan

Standard & Poor’s said it affirmed the B corporate credit rating on Filtration Group Corp.

The agency also said it lowered the rating to B from B+ on Filtration’s first-lien senior secured credit facility due 2020, which consists of a $75 million revolving credit facility and a proposed $115 million in incremental term loan, resulting in a $720 million first-lien term loan.

S&P also said it revised the recovery rating to 3 from 2, indicating 50% to 70% expected default recovery.

The proceeds will be used to redeem part of its $215 million second-lien term loan due 2021, the agency said.

S&P also said it affirmed the B- rating on the company’s second-lien credit facility due 2021. The recovery rating on this debt remains at 5, indicating 10% to 30% expected default recovery.

The outlook is stable.

The stable outlook on Filtration reflects an expectation that the company’s credit measures will improve, including an expected debt-to-EBITDA ratio between 5x and 6x, S&P said.

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