Due to the impact from the coronavirus pandemic, we expect double-digit light-vehicle production declines in the U.S., Europe and China. Together with the decreased volume, we see operational efficiencies arising and ongoing restructuring costs pressuring EBITDA as well. Consequently, we believe Clarios Global L.P.'s debt leverage will remain significantly above 7x in 2020. We are lowering our issuer credit rating on the company to 'B' from 'B+'. The outlook is stable. We are also lowering our issue-level ratings on the company's secured debt to 'B' from 'B+' and on its unsecured debt to 'CCC+' from 'B'. The recovery rating on the secured debt is '3', reflecting our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of default.
