S&P rates Automotive Glass B+, loans BB, B

Standard & Poor's said it assigned its B+ corporate credit rating to auto glass maker Automotive Glass & Services Inc., whose purchase by financial sponsor Platinum Equity is expected to close in November.

The outlook is stable.

The agency noted that Automotive Glass is currently owned by PPG Industries Inc. (A/Watch negative/A-1) and is being purchased by Platinum in a "carve-out" transaction.

In addition, S&P said it assigned its bank loan and recovery ratings to Automotive Glass's $425 million senior secured credit facilities, which consist of a $75 million asset-based loan revolving credit facility due 2012, a $225 million first-lien term loan due 2012 and a $125 million second-lien loan due 2013.

S&P noted that the ABL revolving credit facility and the first-lien term loan are rated BB, two notches higher than the corporate credit rating, with a recovery rating of 1.

The agency added that the revolving credit facility provides for a portion of the facility to be available for the issuance of standby LOCs and for swingline loans.

S&P said that the second-lien term loan is rated B with a recovery rating of 5, indicating an expectation of modest recovery in the event of a payment default.

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