S&P gives Mark IV Industries loans BB, BB-

Standard & Poor's said it assigned its BB bank loan rating and a recovery rating of 1 to Mark IV Industries Inc.'s borrowing subsidiary's $125 million term loan B add-on, maturing in June 2011.

At the same time, the agency said it assigned a BB- rating and a recovery rating of 1 to the firm's subsidiary's $170 million senior secured second-lien term loan, maturing in December 2011.

S&P added it also raised the ratings on Mark IV's existing senior secured bank credit facility to BB from B+ and assigned recovery ratings of 1.

At the same time, S&P said it affirmed its B+ corporate credit rating on the company.

The outlook is negative.

The agency said that the ratings on Mark IV reflect the firm's aggressively leveraged balance sheet, weak debt protection measures and exposure to the cyclical and highly competitive automotive original equipment market.

These weaknesses are somewhat mitigated by the company's good geographic diversification and its market positions in certain niche segments of the automotive supply, industrial and transportation industries, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.