...January 24, 2022 - Turbocharger manufacturer Garrett Motion Inc. (GMI) prepaid $211 million of its series B preferred shares in December 2021 and plans to redeem an additional $200 million in first-quarter 2022, which will help maintain its leverage at about 5x this year despite interest accruals on the preferred shares series A that we treat as debt. - We anticipate that GMI will generate meaningful free operating cash flow (FOCF) of $300 million or more in 2021 and 2022 despite the ongoing supply chain crisis, reflecting higher penetration of turbochargers and the company's leading position in this niche market. - However, GMI's credit metrics from 2023 will depend on the conversion of the preferred shares series A into common equity and the owners' commitment to reduce leverage. - We affirmed our 'B+ long term issuer rating on GMI and our 'B+' issue rating on the company's secured loans. - The stable outlook reflects our view that the market for turbochargers will continue to expand...
