...HONG KONG (S&P Global Ratings) July 25, 2018--S&P Global Ratings today said it has raised its issue-level rating on Doosan Bobcat Inc.'s (DBI) US$978 million senior secured term loan due 2024 to '##' from '##-' and revised the recovery rating to '2' from '3'. The loan belongs to Clark Equipment Co., a DBI subsidiary, and is guaranteed by DBI. The '2' recovery rating reflects our expectation for substantial recovery (70%-90%; 75% rounded estimate) in the event of default. The upgrade mainly reflects the rated senior secured term loan's improved recovery, following a voluntary early prepayment of US$150 million on July 23, 2018. Our expectation of DBI's enterprise value at default is unchanged. After the prepayment, the company's outstanding loan amount is now US$978 million, down from the initial issuance amount of US$1.3 billion in May 2017. The company has made two other voluntary prepayments of US$100 million each in the last 12 months, backed by its good free operating cash flow in the...
