S&P gives Meritor notes BB-

S&P said it assigned its BB- issue-level rating and 5 recovery rating to Meritor Inc.’s proposed $300 million of senior unsecured notes due 2025. The 5 recovery rating indicates S&P’s expectation lenders would receive modest (10%-30%; rounded estimate: 10%) recovery of their principal in the event of a default.

The company intends to use the proceeds to repay about $295 million of the $304 million of borrowings under its revolving credit facility.

At the same time, S&P affirmed Meritor’s BB- issue-level ratings on Meritor’s unsecured debt. The 5 recovery rating remains unchanged.

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