S&P: Dana notes still at BB

S&P said its BB issue-level rating and 4 recovery rating on Dana Inc.'s senior unsecured notes are unchanged following the company's $100 million upsizing of its revolving credit facility and issuance of a $275 million term loan A due 2022 (both are unrated).

The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a default.

The company will use the proceeds from the term loan to refinance its 5 3/8% senior notes due 2021 when the call price steps down in September.

“Despite the company's unpredictable end markets and growth investments, we expect Dana to continue to generate solid earnings and cash flow while maintaining stable credit measures,” S&P said in a news release.

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