S&P assigns Dana Financing notes BB

S&P said it assigned BB issue-level and 4 recovery ratings to Dana Financing Luxembourg Sarl's planned €325 million of senior unsecured notes due 2029. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery for the senior unsecured lenders in default. Dana Inc. will guarantee the notes.

The company plans to use the proceeds to refinance its $375 million of senior unsecured notes due 2026.

“Because this is largely a refinancing transaction, it will not materially increase Dana's leverage or impair the recovery prospects for its unsecured noteholders. Therefore, we rated the new unsecured notes at the same level as our rating on its existing senior unsecured debt,” S&P said in a press release.

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