S&P rates Filtration loan B

S&P said it assigned its B issue-level rating and 3 recovery rating to Filtration Group Corp.’s proposed $104 million first-lien incremental term loan and its proposed $237 million first-lien delayed-draw term incremental loan. The 3 recovery indicates an expectation for meaningful (50%-70%; lower end of the range) recovery in the event of a payment default.

At the same time, S&P affirmed all of its ratings on Filtration Group, including the B corporate credit rating. The outlook remains stable.

S&P said it expects to withdraw its ratings on the second-lien term loan when it is repaid.

“The corporate credit rating affirmation reflects our view that generally positive end-market trends in most of the company's filtration markets will allow the company to maintain debt-to-EBITDA in the 5x-6x range and funds from operations (FFO)-to-debt of less than 12%, inclusive of the proposed acquisitions,” said S&P credit analyst Svetlana Olsha in a news release.

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