S&P assigns Meritor loan BB-

Standard & Poor's said it assigned its BB- issue rating and 1 recovery rating to Meritor Inc.'s proposed amended and extended $415 million senior secured revolving credit facility due 2019.

The 1 recovery rating indicates an expectation of very high (90%-100%) recovery in the event of a payment default.

The proposed transaction will increase the size of the company's existing undrawn revolving credit facility to about $500 million from $429 million; $85 million of the revolver will mature in 2017 and $415 million will mature in 2019.

Although extending the maturity on the undrawn revolver will improve the company's financial flexibility somewhat, the proposed transaction does not affect the B corporate credit rating on the company.

The outlook remains stable, and the B- issue ratings on the senior unsecured debt remain unchanged.

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