S&P: HHI Intermediate loan B+

Standard & Poor's said it assigned a preliminary B+ corporate credit rating to ASP HHI Intermediate Holdings Inc.

The outlook is stable.

S&P also assigned a preliminary B+ rating to HHI's $580 million senior secured credit facility, consisting of a $75 million senior secured revolver and a $505 million term loan B.

The agency also assigned a preliminary recovery rating of 3 to this debt, indicating 50% to 70% expected recovery in a default.

S&P said it intends to withdraw the existing ratings on HHI Holdings LLC upon completion of the proposed financing since all existing debt will have been refinanced.

The ratings reflect the company's weak business risk profile and aggressive financial risk profile, the agency said.

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

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