S&P drops Britax, loans to B-

Standard & Poor's said it lowered its corporate credit rating on Britax Group Ltd. to B- from B.

The outlook is stable.

At the same time, the agency lowered the issue rating on Britax's first-lien credit facilities, including a $370 million (€280 million) term loan and $53 million (€40 million) revolving credit facility, to B- from B. The recovery rating on the first-lien credit facilities is 3, indicating an expectation of meaningful (50%-70%) recovery in the event of a payment default.

S&P said the downgrade reflects its view that Britax's earnings base and cash flow generation for 2014 will be significantly below its initial base-case scenario, driven by the abrupt decline in sales the company has suffered in a few of its markets globally.

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