S&P: UCI loan B, notes CCC+

Standard & Poor's said it affirmed the B corporate credit ratings on United Components Inc. and parent UCI International Inc. and removed the ratings from CreditWatch, where were placed with developing implications on Dec. 1.

The outlook is positive.

S&P said it also assigned the proposed $450 million 6.5-year term loan B and $75 million five-year revolving credit line a B issue rating and 3 recovery rating, and the proposed $250 eight-year million senior notes a CCC+ issue rating and 6 recovery rating.

The affirmation reflects the view that near-term risks to the company's financial flexibility have been reduced by the purchase-related debt refinancing, S&P said.

The ratings reflect UCI International's fair business risk profile, ability to maintain solid double-digit margins during the recession, market position and the relatively stable demand, the agency said.

The ratings also consider the company's earnings, which are subject to volatility in costs for commodities and energy, and its highly leveraged financial risk profile, S&P said.

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