S&P rates Superior loans B-

S&P said it assigned B- issue and 3 recovery ratings to Superior Industries International Inc.’s new $60 million cash flow revolver and $400 million term loan. The 3 recovery score indicates meaningful recovery (50%-70%; rounded estimate: 60%) in default. The 5 recovery rating on Superior's senior unsecured debt, indicating modest recovery (10%-30%; rounded estimate: 20%), is unchanged. The agency also changed its outlook for Superior to stable from negative.

“We revised our outlook on Superior to stable following the company's refinancing of its senior secured credit facilities, which alleviates near-term liquidity pressures and extends the debt maturity profile. With the new revolving facility maturing in 2027 and the term loan in 2028, the company has increased the weighted-average maturity of its debt and pushed off near-term liquidity concerns given the old term loan was set to become current in May 2023,” S&P said in a press release.

However, Superior still needs to address its €250 million of senior unsecured notes and redeemable preferred equity that become due in 2025, the agency said.

The outlook is stable.

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