S&P rates TI Automotive loan BB

Standard & Poor's said it assigned its BB- long-term corporate credit rating to U.K.-based automotive supplier TI Automotive Ltd. The outlook is stable.

At the same time, S&P assigned its BB long-term rating to the proposed £150 million tranche C of the company's senior secured bank facility.

"The ratings reflect TI Auto's below-average business profile and the highly competitive and cyclical nature of the global automotive supply industry, as well as the company's meaningful exposure to the 'big three' auto manufacturers in the U.S. and aggressive financial profile," said S&P credit analyst Bob Ukiah.

"These factors are tempered by the group's position as a leading provider of automotive fuel storage and delivery systems and fluid carrying systems, allied to its broad product coverage in its market segment."

S&P said TI Auto is expected to deleverage over time through profit improvements and debt repayments, despite the uncertain industry outlook.

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