Moody's rates Viasystems notes B1

Moody's Investors Service said it rated Viasystems, Inc.'s $50 million senior secured add-on notes in line with the company's existing $550 million senior secured notes, due 2019, at B1.

The agency also assigned a speculative grade liquidity rating of SGL-3, indicating adequate liquidity.

The outlook was revised to negative from stable and the B2 corporate family and B2-PD probability of default ratings were affirmed.

Moody's said the B1 rating assigned to the $600 million senior secured notes is based on the probability of default of the company, which is B2-PD, as well as the loss given default of the debt instrument, which is LGD-3 (42%).

The rating was driven by the senior secured notes' pari passu position (secured by all domestic assets) relative to the senior secured ABL revolver, and supported by trade payables, which occupy a relatively junior position. Moody's noted that if the company raises additional senior secured debt, the ratings on the senior secured debt will be under downward pressure.

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