S&P rates Resideo notes BB

S&P said it gave BB issue and 4 recovery ratings to Resideo Technologies Inc.’s planned $300 million of senior unsecured notes via its financing subsidiary Resideo Funding Inc. to call the remaining $260 million of its original $400 million of 6 1/8% senior unsecured notes due 2026. The 4 recovery rating reflects an expectation of average (30%-50%; rounded estimate: 45%) recovery in default.

The agency said it will withdraw the 6 1/8% notes’ rating once they’ve been repaid.

S&P also affirmed Resideo’s BB issuer credit rating on the company and BBB- issue-level rating on the revolving credit facility and term loans issued by Resideo Funding. The recovery rating on the debt is 1, reflecting an expectation of very high (90%-100%; rounded estimate: 95%) recovery in default.

The outlook is positive.

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