S&P affirms Remy International

Standard & Poor's said it affirmed its B corporate credit rating on Remy International Inc. following Remy's announcement of its plan to acquire the assets of privately held Unit Parts Co. for about $55 million, including transaction costs, in a negotiated agreement. The outlook is stable.

At the same time, S&P affirmed its B+ bank loan rating and 1 recovery rating on Remy's $160 million first-priority senior secured credit facility.

S&P also affirmed its B- debt rating on the second-priority senior secured floating rate notes, CCC+ debt rating on the senior unsecured notes and CCC+ debt rating on the senior subordinated notes.

S&P said it views the acquisition as somewhat positive for creditworthiness, since the operations of Unit Parts will augment Remy's business profile, and the combined company's leverage and coverage ratios will decline slightly.

The rating affirmation reflects S&P's expectation that Remy will continue to balance strategic goals with continued debt reduction.

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