S&P rates AM General loan BB-

Standard & Poor's said it assigned a B corporate credit rating to AM General LLC, along with a BB- issue rating to the proposed $370 million secured credit facility, which includes a $350 million term loan and an undrawn $20 million revolver.

The facility was assigned a recovery rating of 1, indicating 90% to 100% expected default recovery.

The outlook is stable.

Although earnings and cash flow should support the ratings over the next two years, the long-term prospects for the company are highly uncertain, S&P said.

The company's business risk profile is considered vulnerable given that the company's market position has deteriorated and the company has limited product diversity, the agency said.

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