Moody's introduces new ratings

Moody's Investors Service has introduced two new ratings: probability-of-default ratings and loss-given-default ratings.

The agency's current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The loss-given-default rating methodology will disaggregate these two key assessments in long-term ratings. The agency said the methodology will also enhance the consistency in its notching practices across industries and will improve the transparency and accuracy of its ratings, as Moody's research shows that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments (or LGDs) are assigned to individual rated debt issues - loans, bonds and preferred stock - and express Moody's opinion of expected loss as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0%-9%) to LGD6 (loss anticipated to be 90%-100%).

Below is a list of the rating actions for Moody's rated companies, sorted by industry. The rating immediately after the company name denotes the corporate family rating and the percentages next to the LGDs represent the expected loss-given-default rates.

U.S. automotive and equipment

Accuride Corp., B1; probability-of-default rating, B1; revolver and term loan, upgraded to B1 from Ba3, LGD 3, 31%; notes, B3, LGD 5, 83%.

Affinia Group Inc., B3; probability-of-default rating, B3; revolver and term loan, upgraded to B1 from B2; LGD 2, 27%; notes, upgraded to Caa1 from Caa2, LGD 5, 76%.

AGCO Corp., Ba2; probability-of-default rating, Ba2; senior subordinated and convertible senior subordinated notes, B1, LGD5, 89%; senior unsecured shelf, Ba3, LGD5, 81%.

American Axle & Manufacturing, Inc., Ba3; probability-of-default rating, Ba3; term loan and notes, Ba3, LGD 4, 57%. American Axle & Manufacturing Holdings, Inc., convertible notes, Ba3, LGD 4, 57%.

American Tire Distributors, Inc., B3; probability-of-default rating, B3; notes, upgraded to Caa1 from Caa2, LGD 4, 69%.

ArvinMeritor, Inc., Ba2; probability-of-default rating, Ba2; revolver and term loan, upgraded to Baa3 from Ba1, LGD 2, 18%; notes, Ba3, LGD 4, 64%; senior unsecured shelf, provisional Ba3, LGD 4, 64%. Arvin Capital I, trust preferreds, B1, LGD 6, 96%; Arvin International (UK) plc, Ba3, LGD 4, 64%.

Autocam Corp., Caa1; probability-of-default rating, Caa1; revolver and term loan, upgraded to B1 from B3, LGD 2, 13%; notes, upgraded to Caa2 from Ca, LGD 5, 79%.

Briggs & Stratton Corp., Ba1; probability-of-default rating, Ba1; notes, Ba1, LGD4, 56%.

Commercial Vehicle Group, Inc., Ba3; probability-of-default rating, Ba3; notes, downgraded to B1 from Ba3, LGD 4, 68%.

Cooper Standard Automotive Inc., B2; probability-of-default rating, B2; revolver and term loans, upgraded to Ba3 from B2, LGD 2, 24%; senior notes, B3, LGD 4, 62%; subordinated notes, Caa1, LGD 5, 86%. Cooper Standard Automotive Canada Ltd., revolver and term loans, upgraded to Ba3 from B2, LGD 2, 24%. Cooper Tire & Rubber Co., B2; probability-of-default rating, B2; notes, B2, LGD 4, 57%; senior unsecured shelf, prospective B2, LGD 4, 57%; preferred shelf, upgraded to prospective Caa1 from prospective Caa2, LGD 6, 97%.

Douglas Dynamics, LLC, B2; probability-of-default rating, B2; revolver and term loan, upgraded to Ba2 from B1, LGD 2, 20%; notes, B3, LGD 5, 75%.

Exide Technologies, Caa1; probability-of-default rating, Caa1; revolver and term loan, upgraded to B1 from B3, LGD 2, 17%; notes, upgraded to Caa1 from Caa3, LGD 3, 47%.

Fleetpride Corp., B3; probability-of-default rating, B3; revolver and term loan, upgraded to B1 from B2, LGD 2, 24%; bridge loan, Caa1, LGD 5, 76%; notes, Caa1, LGD 5, 76%. Fleetwood Enterprises Inc., B3; probability-of-default rating, B3; convertible trust debentures, upgraded to Caa2 from Caa3, LGD5, 86%.

Ford Motor Co., B3; probability-of-default rating, B3; revolver and notes, B3, LGD3, 48%; senior unsecured shelf, prospective B3, LGD3, 48%. Ford Motor Co. Capital Trust II, trust preferreds, Caa2, LGD6, 92%. Ford Motor Co. Capital Trust III, trust preferred shelf, prospective Caa2, LGD6, 92%. Ford Motor Co. Capital Trust IV, trust preferred shelf, prospective Caa2, LGD6, 92%. Ford Holdings, Inc., notes, B3, LGD3, 48%; senior unsecured shelf, prospective B3, LGD3, 48%. Ford Capital BV, notes, B3, LGD3, 48%; senior unsecured shelf, prospective B3, LGD3, 48%.

General Motors Corp., B3; probability-of-default rating, B3; senior secured credit facilities, upgraded to Ba3 from B2, LGD1, 9%; senior unsecured credit facility, Caa1, LGD4, 59%; notes, Caa1, LGD4, 59%; senior unsecured shelf, prospective Caa1, LGD4, 59%; subordinated shelf, upgraded to prospective Caa2 from prospective Caa3, 97%; preferred shelf, upgraded to prospective Caa2 from prospective Ca, LGD6, 97%. Vauxhall Motors (Finance) plc, notes, Caa1, LGD4, 59%. General Motors Nova Scotia Finance Co., notes, Caa1, LGD4, 59%; senior unsecured shelf, prospective Caa1, LGD4, 59%. GM Corp. 1991-A2 Pass Through, notes, Caa1, LGD4, 59%.

The GSI Group, Inc., B2; probability-of-default rating, B2; notes, B3, LGD 5, 71%.

Hawk Corp., B2; probability-of-default rating, B2; notes, upgraded to B3 from B2, LGD 4, 62%.

HLI Operating Co. Inc. (guaranteed by Hayes Lemmerz International, Inc.), B3; probability-of-default rating, B3; senior secured revolver and term loan, upgraded to Ba3 from B3, LGD 2, 23%; second-lien term loan, upgraded to B3 from Caa1, LGD 4, 53%; notes, upgraded to Caa2 from Caa3, LGD 5, 82%.

J.B. Poindexter & Co., Inc., B2; probability-of-default rating, B2; notes, B3, LGD 4, 62%.

JLG Industries, Inc., Ba3; probability-of-default rating, Ba3; senior unsecured notes, upgraded to Ba3 from B1, LGD 4, 56%; senior subordinated notes, B2, LGD 5, 86%.

Keystone Automotive Operations, Inc., B2; probability-of-default rating, B2; revolver and term loans, upgraded to Ba3 from B2, LGD 2, 23%; notes, Caa1, LGD 5, 83%.

Lear Corp., B2; probability-of-default rating, B2; term loan, B2, LGD 4, 50%; notes, B3; LGD 4, 61%; convertible notes, B3, LGD 4, 61%; senior unsecured shelf, prospective B3, LGD 4, 61%; subordinated and preferred shelves, prospective Caa1, LGD 6, 97%.

The Manitowoc Company, Inc., Ba3; probability-of-default rating, Ba3; senior unsecured notes, upgraded to Ba3 from B1, LGD 3, 49%; senior subordinated notes, B2, LGD 5, 87%.

Metaldyne Corp., Caa1; probability-of-default rating, Caa1; senior notes, Caa2, LGD 4, 69%;

11% subordinated notes, Caa3, LGD 6, 92%. Metaldyne Co. LLC, loans, upgraded to B2 from B3, LGD 2, 25%.

Milacron Inc., Caa1; probability-of-default rating, Caa1; notes, Caa1, LGD 3, 44%.

Motor Coach Industries International, Inc., Caa2; probability-of-default rating, Caa2; notes, Ca, LGD 6, 92%.

Neenah Foundry Co., B2; probability-of-default rating, B2; senior secured notes, B2, LGD 3, 46%; subordinated notes, Caa1, LGD 5, 85%.

Park-Ohio Industries Inc., B2; probability-of-default rating, B2; notes, upgraded to B3 from Caa1, LGD 5, 76%.

Polypore International, Inc., B3; probability-of-default rating, B3; notes, upgraded to Caa2 from Ca, LGD 6, 90%. Polypore, Inc., revolver and term loans, upgraded to Ba3 from B2, LGD 2, 16%; notes, upgraded to Caa1 from Caa2, LGD 4, 61%.

Remy International, Inc., Caa1; probability-of-default rating, B3; senior secured floating-rate notes, upgraded to B3 from Caa2, LGD 4, 53%; senior notes, upgraded to Caa1 from Ca, LGD 5, 72%; subordinated notes, upgraded to Caa2 from Ca, LGD 6, 92%.

Stanadyne Holdings, Inc., B3; probability-of-default rating, B3; notes, upgraded to Caa2 from Caa3, LGD 6, 92%. Stanadyne Corp., revolver and term loan, upgraded to Ba3 from B1, LGD 1, 9%; notes, upgraded to Caa1 from Caa2, LGD 4, 61%.

Stoneridge Inc., B1; probability-of-default rating, B1; revolver, upgraded to Ba1 from Ba3, LGD 2, 14%; notes, B2, LGD 4, 67%.

Tenneco Inc., B1; probability-of-default rating, B1; revolver and term loan, upgraded to Ba1 from Ba3, LGD 2, 15%; senior notes, upgraded to Ba3, B2, LGD 3, 42%; subordinated notes, B3, LGD 6, 92%.

Terex Corp., Ba3; probability-of-default rating, Ba3; revolver and term loan, upgraded to Ba1 from Ba2, LGD 2, 22%; notes, upgraded to B1 from B2, LGD 5, 76%.

TRW Automotive Inc., Ba2; probability-of-default rating, Ba2; revolver and term loans, upgraded to Ba1 from Ba2, LGD2, 24%; senior notes, Ba3, LGD 5, 70%; subordinated notes, B1, LGD 6, 94%.

United Components, Inc., B2; probability-of-default rating, B2; revolver and term loan, upgraded to Ba3 from B2, LGD 2, 25%; subordinated notes, Caa1, LGD 5, 80%.

Visteon Corp., B2; probability-of-default rating, B2; term loan, upgraded to Ba2 from B1, LGD 2, 22%; notes, downgraded to Caa1 from B3, LGD 6, 91%; senior unsecured shelf, downgraded to prospective Caa1 from prospective B3, LGD 6, 91%; subordinated shelf, upgraded to prospective Caa1 from prospective Caa2, LGD 6, 97%; preferred shelf, upgraded to prospective Caa1 from prospective Caa3, LGD 6, 97%. Visteon Capital Trust I, trust preferred shelf, upgraded to prospective Caa1 from prospective Caa2, LGD 6, 97%.

© 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.