S&P rates Keystone Automotive loans B, CCC+

Standard & Poor's said it assigned its preliminary B corporate credit rating to Keystone Automotive Operations Inc.

The outlook is stable.

At the same time, S&P assigned a preliminary B issue-level rating and a preliminary 4 recovery rating to the company's proposed $235 million first-lien term loan. The 4 recovery rating indicates the expectation that lenders would receive average (30%-50%) recovery in the event of a payment default.

The agency also assigned a preliminary CCC+ issue-level rating and a preliminary 6 recovery rating to the company's proposed $100 million second-lien term loan. The 6 recovery rating indicates the expectation that lenders would receive negligible (0%-10%) recovery in the event of a payment default.

"The preliminary ratings on Keystone reflect our view of the company's 'highly leveraged' financial risk profile and 'weak' business risk profile," S&P credit analyst Robyn Shapiro said in a news release.

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