S&P rates TTM loan B+, may lower convertibles

Standard & Poor’s said its ratings on TTM Technologies Inc. remain on CreditWatch with negative implications. The ratings include the BB corporate credit rating on TTM and BB issue-level rating on the company’s senior unsecured debt.

“We expect to lower the corporate credit rating on TTM to B+ from BB and remove it from CreditWatch after the company’s acquisitions of Viasystems Group Inc. closes,” said S&P credit analyst Christian Frank in a news release.

“We would also lower our issue-level rating on the company’s senior unsecured convertible notes (which will remain part of the new capital structure) to B- from BB and revise the recovery rating to 6 from 4.”

S&P is assigning its B+ issue-level rating and 3 recovery rating to TTM’s proposed $765 million senior secured term loan due 2022. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; at the higher end of the range) in the event of payment default.

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