S&P lowers Garrett Motion

S&P said it lowered its issuer and secured debt ratings on Garrett Motion Inc. to B from BB- and the unsecured debt ratings to CCC+ from B. Concurrently, S&P placed all the ratings on CreditWatch negative.

“Given Switzerland-based turbocharger maker Garrett Motion’s announcement that it is exploring alternatives for balance sheet restructuring to protect its competitive position, we see a markedly higher risk of default under our definitions compared with our previous expectations,” S&P said in a press release.

Garrett posted slightly-better-than-expected second-quarter results, so the announcement was a surprise, S&P said.

The agency said it plans to resolve the CreditWatch once it has more clarity about management’s intentions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.