Moody's ups Lear loan to B1

Moody's Investors Service said it affirmed Lear Corp.'s corporate family and probability-of-default ratings of B2 and senior unsecured notes at B3 (LGD4, 58%), and raised the senior secured term loan to B1 (LGD3, 42%), from B2 (LGD3, 47%).

The outlook is stable.

Moody's said the affirmation reflects ability to generate operating margins and other key credit metrics despite pressure on North American automotive production.

For the 12 months ending June 30, Lear's debt-to-EBITDA ratio was 3 times.

The upgrade of the senior secured term loan reflects a reduction in the size of the secured revolving credit facility to $1.29 billion from $1.7 billion and a decrease in the level of administrative trade payable claims assumed at default, according to the agency.

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