S&P: Sensata loan BB+, notes B

Standard & Poor's said it assigned issue-level and recovery ratings to Sensata Technologies BV's proposed $1.45 billion senior secured credit facility, consisting of a $1.2 billion term loan and a $250 million revolver and proposed $600 million senior unsecured notes.

The issue-level rating for the secured facility is BB+, which is two notches above the corporate credit rating with a recovery rating of 1, indicating 90% to 100% recovery in a default.

The senior notes are rated B, which is two notches below the corporate credit rating with a recovery rating of 6, indicating 0% to 10% expected recovery in a default.

The proceeds will be used to refinance the company's capital structure, including its existing credit facility, 8% senior notes due 2014 and 9% senior subordinated notes due 2016.

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

Continued majority ownership by Bain Capital remains a risk, since it relates to the company's financial policy, S&P added.

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