...September 21, 2023 - Garrett Motion Inc. (GMI)'s early repayment of $200 million of debt in July 2023, combined with plans for a similar move in 2024, alleviates our doubts about the company's financial policy. - Reduced debt strengthens GMI's financial risk profile, supporting, in our view, the sustainable decrease of our adjusted gross debt-to-EBITDA ratio to below 3x and the increase of funds from operations (FFO) to debt beyond 20% by the end of 2023. - We therefore raised our issuer ratings on GMI and its debt to '##-' from 'B+'; the '3' recovery rating on the debt indicates our estimate of about 60% recovery (rounded estimate), up from 50%, in the event of a default. - The stable outlook reflects our view that the market for turbochargers will keep expanding in the near term despite a shift to alternative powertrains, with GMI maintaining its leading market position and EBITDA margins staying above 15%, supporting free operating cash flow (FOCF) of $250 million-$350 million in 2023...
