S&P rates Visteon notes B-

Standard & Poor's said it assigned its B- issue-level rating and 5 recovery rating to Visteon Corp.'s proposed issuance of as much as $210 million in senior unsecured notes due 2016.

The B- issue-level rating is one notch below the corporate credit rating on the company and the 5 recovery rating indicates the expectation for modest recovery in the event of a payment default, the agency said.

Visteon will use the proceeds from the new notes, along with existing cash, to repay as much as $344 million of its $550 million senior unsecured notes due in 2010, S&P added, noting that Visteon plans a tender offer for the 2010 notes.

The ratings on Visteon, including the B corporate credit rating, reflect the company's negative cash flow resulting from declining vehicle production in North America, its highly leveraged balance sheet, continued pressure from high raw-material prices and a costly and wide-ranging operational restructuring, S&P added.

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