S&P cuts Superior Industries

S&P said it lowered its ratings on Superior Industries International Inc. and its senior secured debt to B- from B and its unsecured debt to CCC+ from B-.

“Superior faces heightened refinancing risk because most of its debt will mature in the next two years. We believe that the company's refinancing risk will increase as its debt maturities draw closer. This risk is compounded by the dislocations across the high yield credit markets that have led to higher borrowing costs amid ongoing Federal Reserve rate hikes, persistently high inflation, and rising macroeconomic uncertainty,” the agency said in a press release.

Superior’s $349 million term loan is due May 2024 and its €250 million of senior unsecured notes mature June 2025. The company will also need to address European and U.S. revolving facilities, which mature on May 23, 2023, and Oct. 31, 2023, respectively.

The outlook is negative.

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