S&P cuts Garrett Motion

S&P said it downgraded Garrett Motion Inc. to D from B and all its issue ratings on Garrett to D. Concurrently, the agency removed the ratings from CreditWatch with negative implications where they had been placed on Sept. 4.

The downgrade follows Garrett’s Chapter 11 bankruptcy filing on Sunday.

“We understand the filing resulted from a potential long-term inability to sustain increasing research and development investing and participate in industry consolidation, exacerbated by uncertain market recovery prospects after Covid-19. The company has entered a stalking horse asset purchase agreement with private equity firm KPS Capital Partners LP,” S&P said in a press release.

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