S&P rates Kongsberg notes B+

S&P said it assigned a preliminary B+ long-term issuer credit rating to Kongsberg Automotive ASA.

The outlook is stable.

The agency also said it assigned a preliminary BB- rating and preliminary 2 recovery rating to Kongsberg Automotive's €275 million senior secured notes due 2025.

The recovery rating reflects 70% to 90% expected default recovery.

The ratings reflect the company's highly competitive and cyclical end-markets, which limits its ability to mitigate potential adverse business, financial or economic conditions, S&P said.

The company has high fixed costs, which limits the flexibility of cost reductions in a downturn, the agency said.

The ratings also reflect recent weak free operating cash flows, which have stemmed partly from ongoing restructuring activities and raw material price headwinds, S&P said.

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