S&P rates Commercial Vehicle debt B+

Standard & Poor's said it assigned its B+ rating to Commercial Vehicle Group Inc.'s proposed $150 million senior unsecured debt due 2013 as well as a BB- corporate credit rating.

The rating for the senior unsecured debt reflects the substantial amount of priority liabilities in the company's capital structure, the agency said.

The outlook is stable.

Proceeds from the proposed transaction will be used, in part, to pay down debt of about $162 million incurred to purchase the North American assets of Mayflower Vehicle Systems and Monona Wire Corp, S&P noted.

The ratings reflect the company's aggressive leverage and participation in highly competitive and cyclical end markets. These risks are mitigated by the company's free cash flow generation, which should enable modest debt reduction, S&P said.

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