S&P rates Garrett Motion loans BB-, notes B

S&P said it assigned its preliminary BB- long-term issuer credit rating to Garrett Motion Inc. The outlook is stable.

At the same time, S&P assigned a preliminary BB- issue rating and 3 recovery rating to the proposed senior secured facilities (including the $500 million multicurrency revolving credit facility due 2023, $400 million euro-denominated term loan A due 2023 and $750 million dollar- and euro-denominated term loan B due 2026). This reflects expectations of meaningful recovery (50%-70%; rounded estimate: 65%).

S&P said it also assigned a preliminary B issue rating and 6 recovery rating to the proposed $510 million senior unsecured notes due 2026. This reflects expectations of negligible recovery (0%-10%; rounded estimate: 0%), based on its subordination to the senior secured debt.

Garrett Motion is a spinoff from U.S.-based Honeywell International Inc. and is a leading global player in the design, production and sale of diesel and gasoline turbochargers for light and commercial vehicles.

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