LKQ Corp. $600 Million Senior Unsecured Notes Rating Raised To 'BB-' From 'B+' (Recovery: '5') - S&P Global Ratings’ Credit Research

LKQ Corp. $600 Million Senior Unsecured Notes Rating Raised To 'BB-' From 'B+' (Recovery: '5')

LKQ Corp. $600 Million Senior Unsecured Notes Rating Raised To 'BB-' From 'B+' (Recovery: '5') - S&P Global Ratings’ Credit Research
LKQ Corp. $600 Million Senior Unsecured Notes Rating Raised To 'BB-' From 'B+' (Recovery: '5')
Published Aug 15, 2017
4 pages (1595 words) — Published Aug 15, 2017
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Abstract:

NEW YORK (S&P Global Ratings) Aug. 15, 2017--S&P Global Ratings today raised its issue-level rating on LKQ Corp.'s $600 million 4.75% senior unsecured notes due in 2023 to 'BB-' from 'B+' and revised the recovery rating to '5' from '6'. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of a default. The issue-level rating on Milan-based subsidiary LKQ Italia Bondco S.p.A.'s €500 million 3.875% senior unsecured notes due in 2024 remains 'BB', and the recovery rating is '4', indicating our expectation for average (30%-50%; rounded estimate: 45%) recovery in the event of a default. LKQ Italia is an indirectly wholly owned subsidiary of LKQ Corp. The improvement in the issue-level and

  
Brief Excerpt:

...NEW YORK (S&P Global Ratings) Aug. 15, 2017--S&P Global Ratings today raised its issue-level rating on LKQ Corp.'s $600 million 4.75% senior unsecured notes due in 2023 to '##-' from 'B+' and revised the recovery rating to '5' from '6'. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of a default. The issue-level rating on Milan-based subsidiary LKQ Italia Bondco S.p.A.'s 500 million 3.875% senior unsecured notes due in 2024 remains '##', and the recovery rating is '4', indicating our expectation for average (30%-50%; rounded estimate: 45%) recovery in the event of a default. LKQ Italia is an indirectly wholly owned subsidiary of LKQ Corp. The improvement in the issue-level and recovery ratings for the $600 million senior unsecured notes is due to a change in our assumptions regarding the enterprise value of the non-guarantors. As the company expands its business in Europe, we expect more of the firm's value to be derived...

  
Report Type:

Ratings Action

Ticker
LKQX
Issuer
LKQ Corp.
GICS
Distributors (25501010)
Sector
Global Issuers
Country
United States
Region
United States
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "LKQ Corp. $600 Million Senior Unsecured Notes Rating Raised To 'BB-' From 'B+' (Recovery: '5')" Aug 15, 2017. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/LKQ-Corp-600-Million-Senior-Unsecured-Notes-Rating-Raised-To-BB-From-B-Recovery-5-1900958>
  
APA:
S&P Global Ratings’ Credit Research. (). LKQ Corp. $600 Million Senior Unsecured Notes Rating Raised To 'BB-' From 'B+' (Recovery: '5') Aug 15, 2017. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/LKQ-Corp-600-Million-Senior-Unsecured-Notes-Rating-Raised-To-BB-From-B-Recovery-5-1900958>
  
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