S&P rates Metaldyne, loan B+

Standard & Poor's said that it assigned Metaldyne LLC a B+ corporate credit rating and its $250 million senior secured term loan due 2016 a B+ issue-level rating with a 3 recovery rating.

The outlook is stable.

Proceeds of the debt issue were used to help fund dividends and to refinance some existing debt.

The ratings reflect Metaldyne's weak business risk profile including volatile demand, high fixed costs, intense competition, severe pricing pressures and low operating cash flow, S&P said.

The ratings are supported by the fact that Metaldyne's products are used mostly in vehicle powertrains and therefore have longer lives and are less commodity-like than many other automotive parts, the agency said.

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