S&P rates Sun Sage notes B+

Standard & Poor's said it assigned its long-term BB rating to Sun Sage BV, reflecting the credit quality of its sole operating entity, Korean automotive parts supplier Mando Corp. At the same time, S&P assigned its B+ rating to the proposed issue by Sun Sage of $200 million in senior secured and subordinated notes due 2009.

The outlook is positive.

"The rating on Sun Sage reflects Mando's competitive position as the primary supplier of brakes, steering, and suspension systems for Hyundai Motor and other Korean automakers, its strong earnings, and its moderate financial profile," said S&P credit analyst Eun Jin Kim. "These strengths are offset by Mando's high customer concentration to Hyundai and Kia Motors, its still limited product diversification compared with its global peers, and pressure on prices from major customers."

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