...PARIS (S&P Global Ratings) Jan. 21, 2021--S&P Global Ratings today assigned its '##' issue rating and '3' recovery rating to Faurecia SE's (##/Stable/--) proposed 190 million add-on to its 700 million senior unsecured notes due 2027. The '3' recovery rating indicates our expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. Auto parts manufacturer Faurecia will use the proceeds to partly reduce the use of short-term commercial paper. The rest of the proceeds will be kept as cash on the balance sheet. We expect that the proposed transaction will be almost neutral for the company's credit metrics because it does not change the amount of adjusted net debt. Our '##' long-term issuer credit rating on Faurecia reflects our belief that the company will maintain leading market positions in its three largest divisions (seating systems, interiors, and clean mobility) and strict cost discipline. With a gradual recovery of global auto production volumes...
