S&P: Allison outlook negative

Standard & Poor's said it affirmed Allison Transmission Inc.'s B+ corporate credit rating and BB- senior secured rating and revised the outlook to negative from stable following the postponement of the company's proposed $1.1 billion offering of senior unsecured notes due to market conditions and their replacement with an unrated $1.1 billion bridge loan.

Proceeds from the bridge loan, together with a $3.1 billion senior secured term loan which remains in place, were used to finance the acquisition of the company by Carlyle Group and Onex Corp. from General Motors Corp. (B/negative/B-3) in a leveraged buyout completed during the week of Aug. 6.

"We expect the company's operating performance to remain strong despite a near-term decline in revenues and profitability due to the cyclical downturn in the commercial-truck market," S&P credit analyst Gregg Lemos Stein said in an agency rating.

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