S&P rates Adient debt BBB

S&P said it assigned a preliminary BB+ corporate credit rating to Adient plc.

Adient is a newly formed public company spun-off by Johnson Controls Inc. for its automotive seating and interiors businesses.

The agency also said it assigned a preliminary BBB rating and 1 recovery rating to Adient's senior secured debt.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The outlook is stable.

The ratings reflect the company's position as the leading provider of seating systems for the global light-vehicle market, S&P said.

With operations in 33 countries, the company delivers 25 million seating systems per year and has long-standing relationships with all of the premier automotive manufacturers, the agency said.

The majority of these relationships spans more than 20 years and have carried over from the company's time as Johnson Control’s automotive seating segment, S&P added.

The stable outlook considers an assumption that the company will maintain a debt-to-EBITDA ratio of less than 4x over the next 12 months, the agency said.

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