S&P rates Dana notes BB+

S&P said it assigned a BB+ rating and 4 recovery rating to Dana Financing Luxembourg Sarl's proposed $375 million senior unsecured notes due 2026.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The issuer is an indirect wholly owned subsidiary of Dana Holding Corp.

The proceeds will be used redeem the company’s $350 million of outstanding 2021 notes and for general corporate purposes, which may include debt repayment, S&P said.

The new notes will be the unsecured general obligations of the issuer and the guarantor and will be subordinated in right of payment to all secured debt and equal in right of payment to all existing and future senior unsecured debt, including the company's existing notes, the agency said.

The company should continue to generate solid earnings and cash flow while maintaining stable credit measures despite its unpredictable end-markets and growth-related investments, S&P said.

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