S&P rates Tenneco notes B+

Standard & Poor's said it assigned a B+ rating to Tenneco Inc.'s proposed $250 million senior unsecured notes due 2015, one notch below the corporate credit rating, reflecting the unsecured nature of the proposed new debt in Tenneco's capital structure, which consists mainly of secured debt.

The outlook is stable.

Proceeds will be used to tender for $230 million of its 10¼% secured second-lien notes due 2013.

Because the tender will substantially reduce the outstanding principal on the 10¼% notes, S&P said it raised the ratings on that issue to BB from BB- and affirmed the BB- corporate credit rating.

"The ratings on Tenneco reflect a weak business profile and aggressive financial profile," S&P credit analyst Lawrence Orlowski said in a written statement.

The company also benefits from good diversity among its customers, business platforms and regions of operation, but is exposed to the risks of declining vehicle production by its largest customers, General Motors Corp. and Ford Motor Co., 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.