S&P: Harman Finance notes BBB-

Standard & Poor’s said it assigned a BBB- rating to Harman Finance International SCA’s proposed €350 million senior unsecured notes due 2022.

Harman Finance is a subsidiary of Harman International Industries Inc.

The proceeds will be used to repay a portion of the outstanding debt on the company’s revolving credit facility and to fund acquisitions, S&P said.

The proposed senior notes will rank equally with all existing and future senior unsecured debt and will be senior to all of the future subordinated debt issued by Harman Finance, the agency said.

The notes will be guaranteed as the senior unsecured obligations of Harman International Industries, S&P noted.

The ratings reflect Harman’s lack of large near-term debt maturities and an assumption that its credit metrics and free cash flow are sustainable, the agency said.

The ratings also consider Harman’s position as a leading supplier of audio and “infotainment” products for the automotive industry, S&P said.

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