S&P rates August Cayman debt B, term loan B-

Standard & Poor's said it assigned its preliminary B corporate credit rating to August Cayman Intermediate Holdco Inc. The outlook is stable.

At the same time, the agency said it assigned its preliminary issue-level ratings of B to the senior secured debt and B- to the second-lien term loan. The preliminary 3 and preliminary 5 recovery ratings reflect expectations for meaningful and modest recovery, respectively, of principal in the event of default.

"The ratings reflect what we consider to be Schrader's weak business risk profile, reflecting its exposure to cyclical auto production levels ó limited scale and product diversity ó somewhat offset by growth prospects supported by regulatory requirements, and its highly leveraged financial risk profile, given leverage expectations between 4.5x to 5.0x, with limited positive free cash flow generation prospects over the next two years," said S&P credit analyst Nishit Madlani in a news release.

© 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.