S&P rates Autoparts loans B+, B-

Standard & Poor's said today that it assigned a B+ corporate credit rating to Autoparts Holdings Ltd.

The outlook is stable.

S&P assigned a B+ issue rating and 3 recovery rating on the proposed senior secured first-lien credit facility, which includes a five-year $50 million first-lien revolving credit facility and a six-year $530 million first-lien term loan B.

S&P also assigned a B- issue rating and 6 recovery rating to the 6.5-year $150 million second-lien term loan.

The ratings reflect its fair business risk profile, characterized by relatively steady revenue growth and double-digit margins but also a concentrated customer base, the agency said.

The ratings consider the company's highly leveraged financial risk profile with low free cash flow generation, adjusted debt leverage under 5 times and ownership by New Zealand private investor Graeme Hart's Rank Group Ltd., the agency added.

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