...February 28, 2024 PARIS (S&P Global Ratings) Feb. 28, 2024--S&P Global Ratings today said it assigned its '##' issue rating and '3' recovery rating to auto parts manufacturer Forvia SE's (##/Stable/--) proposed 800 million senior unsecured notes, that we assume will be split into two equal tranches of 400 million due 2029 and 2031. The '3' recovery rating indicates our expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default. The proposed notes will rank pari passu with the company's existing unsecured debt. We view the transaction as leverage neutral because Forvia will use the proceeds to repay existing debt, including part of its 1 billion senior unsecured notes due 2025 and part of the 800 million outstanding under its unsecured sustainability-linked bonds due 2026. For 2024, we anticipate that Forvia will continue to gradually improve its profitability and leverage, although more slowly than previously expected, due to flat auto production growth,...
