S&P gives B to Henniges loan

Standard & Poor's said it assigned LJ/HAH Holdings Corp., parent company of Henniges Automotive Holdings Inc., a B corporate credit rating.

The outlook is stable.

The agency also assigned Henniges' $265 million term loan B due 2021 a B issue-level rating with a recovery rating of 3, indicating an expectation for meaningful (50%-70%) recovery for lenders at default.

The company used proceeds to repay Henniges' prior term loan and revolving facility borrowings and to pay a one-time dividend to the financial sponsor. Henniges has also reset its asset-backed revolving credit facility (not rated) at $50 million.

S&P said the B corporate credit rating on LJ/HAH reflects the company's small scale and narrow product scope as a supplier of sealing and anti-vibration products in the highly cyclical global auto industry.

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