S&P rates Sage Automotive loans B, CCC+

Standard & Poor’s said it assigned its B corporate credit rating to Sage Automotive Interiors Inc. The outlook is stable.

At the same time, S&P assigned B issue-level and 3 recovery ratings to Sage’s $155 million first-lien term loan and $30 million add-on first-lien term loan. The 3 recovery rating indicates an expectation that lenders would receive a meaningful (high end of the 50% to 70% range) recovery in the event of a payment default.

S&P also assigned a CCC+ issue-level and 6 recovery ratings to the company’s $35 million second-lien term loan. The 6 recovery rating indicates an expectation that lenders would receive negligible recovery (0% to 10%) in the event of a payment default.

The company also has an unrated $30 million asset-based lending revolver.

“Our assessment of Sage’s business position reflects the narrow scope of its product portfolio, with seating fabric sales make up about 93% of its revenues, and limited end-market diversity, partly offset by its favorable position in the niche seating fabric market,” said S&P credit analyst Naomi Dsouza in a news release.

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