S&P revises recovery on Pittsburgh Glass notes

Standard & Poor’s said it revised the recovery rating on Pittsburgh Glass Works LLC’s $360 million senior secured notes due 2018 to 3 from 4 following the company’s $36 million prepayment on the notes.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The company’s B+ rating is unchanged.

The ratings are based on the significant and protracted economic downturn that hurts the company’s original equipment manufacturer and aftermarket sales, leading to a drop in earnings, S&P said.

The agency said it assumed the company would emerge from bankruptcy as a going concern, considering the cyclical economic factors inherent in the default scenario, the company’s long-term relationships with some of its largest OEM customers and its market position.

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