S&P: CNH Industrial notes BB

S&P said it assigned a BB rating to CNH Industrial Capital LLC's proposed senior unsecured notes.

CNH Industrial Capital's wholly owned subsidiaries, CNH Industrial Capital America LLC and New Holland Credit Co. LLC, will guarantee the notes.

The company expects to use the proceeds from this issuance for working capital and other general corporate purposes, which may include the purchase of receivables or other assets or the repayment of its outstanding debt, S&P said.

The unsecured notes are rated one-notch lower than the corporate credit rating on the company because the agency said it estimates that CNH Industrial Capital's amount of unencumbered assets will remain close to or less than its amount of unsecured debt.

The company's heavy reliance on secured debt, through asset-backed security transactions, encumbers a significant majority of its balance sheet assets, S&P added.

CNH Industrial Capital is a wholly owned subsidiary of CNH Industrial NV.

The BB+ corporate credit rating on CNH Industrial Capital reflects the long-term corporate credit rating on its parent, CNH Industrial, the agency said.

The subsidiary is considered a core holding of CNH Industrial given its strategic importance to the parent and an expectation for financial support if needed, S&P said.

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