Garrett Motion Inc.'s Secured Debt Raised To 'BB+' On Early Secured Debt Repayment

PARIS (S&P Global Ratings) July 11, 2024--S&P Global Ratings today raised to 'BB+' from 'BB' its issue rating on Garrett Motion Inc.'s outstanding secured debt, including its $695 million facility and its $600 million revolving credit facility (RCF). We revised the recovery rating to '1' from '2', indicating our expectation of very high (90%-100%; rounded 90%) recovery for the secured lenders in the event of a payment default. The rating action follows the company's early repayment of $85 million of the existing euro term loan in July 2024, which improves recovery prospects for secured lenders. This action more than offsets the modest upsize of the RCF to $600 million from about $570 million, which we assume would be 85% drawn

...July 11, 2024 PARIS (S&P Global Ratings) July 11, 2024--S&P Global Ratings today raised to '##+' from '##' its issue rating on Garrett Motion Inc.'s outstanding secured debt, including its $695 million facility and its $600 million revolving credit facility (RCF). We revised the recovery rating to '1' from '2', indicating our expectation of very high (90%-100%; rounded 90%) recovery for the secured lenders in the event of a payment default. The rating action follows the company's early repayment of $85 million of the existing euro term loan in July 2024, which improves recovery prospects for secured lenders. This action more than offsets the modest upsize of the RCF to $600 million from about $570 million, which we assume would be 85% drawn at default. Our long-term issuer credit rating on Garrett Motion is unchanged at '##-'. For the complete issuer credit rating rationale, see "Auto Supplier Garrett Motion Inc. Upgraded To '##-' On Deleveraging Progress; Outlook Stable," published Sept....

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