S&P rates Arcas loan B+

Standard & Poor's said it assigned a B+ corporate credit rating to Arcas Intermediate-Holdings Entity (Sequa Auto).

The outlook is stable.

S&P also said it assigned a B+ rating to the company's $275 million senior secured credit facility, composed of a $220 million term loan B and $35 million revolver with ARC Automotive Group Inc. and Casco Automotive Group Inc. as borrowers, and a $20 million revolver with Arcas Automotive Group (Luxco 1) Sarl as the borrower.

The agency also said it assigned a recovery rating of 3 to the facility, indicating 50% to 70% expected default recovery.

The ratings reflect the company's weak business risk profile, which incorporates the company's exposure to cyclical auto production levels and limited scale and customer diversity, S&P said.

Those negative factors are offset by growth prospects as a result of Sequa Auto's geographic footprint, the agency said.

© 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.