S&P rates Plastech loans BB, B+, B-

Standard & Poor's said it affirmed its B+ corporate credit rating on Plastech Engineered Products Inc. and removed the rating from CreditWatch with negative implications, where it was placed Aug. 21.

At the same time, S&P said it assigned its BB bank loan rating and its 1 recovery rating to the company's proposed $200 million first-lien revolving ABL credit facility.

The agency added it assigned its B+ rating and its 2 recovery rating to Plastech's proposed $250 million first-lien term loan.

In addition, a B- rating and a 5 recovery rating was assigned to Plastech's proposed $150 million second-lien term loan.

The agency said that the rating affirmation follows a review of the impact of Ford Motor Co.'s (B/negative/B-3) sharply reduced vehicle production in the fourth quarter of 2006.

S&P said it has concluded that net new business, transfer business and the effect of aggressive efforts to reduce the cost of manufacturing will somewhat alleviate the negative effect of the Ford cuts and lower production by General Motors Corp. (B/Watch Neg/B-3) and DaimlerChrysler AG (BBB/stable/A-2) on 2006 earnings and cash flow.

© 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.