S&P: CNH Industrial notes BB+

S&P said it assigned a BB+ rating and 4 recovery rating to CNH Industrial NV's proposed senior unsecured notes.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The proceeds will be used for general corporate purposes, which may include the purchase of a portion of its subsidiary Case New Holland Industrial Inc.'s $1.5 billion 7.785% senior unsecured notes due 2017.

The company’s BB+ corporate credit rating and stable outlook are unchanged.

As of March 31, the company's adjusted debt-to-EBITDA ratio was about 1.8x, S&P said.

The agency also said it expects CNH Industrial's leverage will tick up over the next several quarters because of continuing weakness in its agricultural and construction markets and the impact of the about €500 million cash outflow relating to a settlement of the European Commission.

The ratings also consider the company's well-established market positions in the agricultural equipment, construction equipment, trucks and powertrain markets, S&P said.

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