S&P: Allison unchanged

Standard & Poor's said the BB- rating and 2 recovery rating Allison Transmission Inc.'s new term loan B-3 are unaffected by the upsizing to $850 million from the planned $500 million.

The new term loan (B-3 tranche) would refinance a portion of its original $3.1 billion secured term loan facility due in August 2014, S&P said.

This transaction is expected to be leverage neutral as the company will use proceeds to refinance existing debt, the agency said. The company's leverage will remain relatively unchanged, S&P said.

The ratings consider its aggressive financial risk profile, the agency said, with positive cash flow generation prospects over the next two years.

The ratings also reflect the company's fair business risk profile, reflecting good profitability prospects and a strong market share, S&P said.

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