S&P: Zebra loan BB+, notes B

Standard & Poor’s said it assigned a BB- corporate credit rating to Zebra Technologies Corp.

The agency also said it assigned a BB+ rating with a recovery rating of 1 to the company’s proposed $2 billion senior secured term loan due 2021 and $250 million revolving credit facility due 2019. The 1 recovery rating indicates 90% to 100% expected default recovery.

S&P also said it assigned a B rating to the company’s proposed $1.25 billion senior unsecured notes due 2022. The 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook is stable.

The ratings consider the company’s inconsistent operating performance and near-term integration risk, partially offset by the good track record of the legacy Zebra business and the leading market positions of the combined company, S&P said.

The ratings also reflect a view that leverage is likely to fall to less than 5x during 2015 as the company realizes cost savings and repays debt, the agency said.

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