S&P ups Commercial Vehicle

Standard & Poor's said that it raised the corporate credit rating on Commercial Vehicle Group Inc. to B- from CCC+ and assigned a B- rating to the proposed $225 million second-lien senior secured notes due 2019. The recovery rating is 4, indicating the expectation that lenders would receive average (30% to 50%) recovery in the event of a payment default.

The outlook is positive.

The upgrade reflects the assumption that the company can improve EBITDA and cash flow in the next two years, because commercial truck production volumes will continue to rise year-over-year in 2011 and 2012, S&P said.

The ratings on Commercial Vehicle reflect its highly leveraged financial risk profile and vulnerable business risk profile, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.