S&P rates Crowne loans B, CCC+

Standard & Poor’s said it assigned a B corporate credit to Crowne Group LLC.

The agency also said it assigned a B rating and 3 recovery rating to the company’s $290 million first-lien term loan. The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company’s $90 million second-lien term loan. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

Crowne operates in the cyclical and intensely competitive auto supplier industry, S&P said. Since 2013, its revenue has grown substantially through acquisitions, the agency added.

Although the Trico Products Corp. acquisition will boost Crowne’s total revenue by roughly 80% in 2014 and increase product- and customer diversification, the agency said it believes the pace of expansion poses substantial integration risks.

With the Trico acquisition, the company will have No. 1 position for wiper blades in the U.S. aftermarket and original equipment manufacturer truck market, S&P said.

This will provide Crowne with new customer relationships, the agency said, and reduce its customer concentration levels.

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