S&P rates ASP HHI Intermediate loan B+

Standard & Poor's said it assigned a B+ corporate credit rating to ASP HHI Intermediate Holdings Inc., along with a B+ rating to its $580 million senior secured credit facility, consisting of a $75 million senior secured revolver and a $505 million term loan B.

S&P also assigned a recovery rating of 3 to this debt, indicating 50% to 70% expected default recovery.

The outlook is stable.

The ratings incorporate the multiple industry risks facing automotive suppliers, including volatile demand, high fixed costs, intense competition and severe pricing pressures, S&P said.

The ratings also consider the company's acquisition by American Securities through a recapitalization, repaying existing debt, the agency said.

The company has a reported strong market position as a manufacturer of highly engineered metal forgings and machined components, wheel bearings and powdered metal engine and transmission components for automotive and industrial customers, S&P said.

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