Research Update: Cooper-Standard Holdings Inc. Upgraded To 'CCC+' From 'SD' On Improved Liquidity After Restructuring; Outlook Negative

U.S.-based Cooper-Standard Holdings Inc. completed its restructuring, including repayment of its near-term maturities with longer-maturity first-lien and third-lien notes. It also converted some of its cash interest to payment-in-kind (PIK) interest. Although gross debt is about the same, the company improved its liquidity position. As a result, we raised our issuer credit rating on the company to 'CCC+' from 'SD' (selective default). At the same time we assigned a 'CCC+' issue-level rating and '4' recovery rating (30%-50%; rounded estimate: 45%) to the new $580 million first-lien senior secured notes due in 2027 and 'CCC-' rating and '6' recovery rating (0%-10%; rounded estimate: 0%) to the new $357 million third-lien senior secured notes due in 2027. We raised the rating on

...- U.S.-based Cooper-Standard Holdings Inc. completed its restructuring, including repayment of its near-term maturities with longer-maturity first-lien and third-lien notes. It also converted some of its cash interest to payment-in-kind (PIK) interest. Although gross debt is about the same, the company improved its liquidity position. - As a result, we raised our issuer credit rating on the company to '###+' from '##' (selective default). - At the same time we assigned a '###+' issue-level rating and '4' recovery rating (30%-50%; rounded estimate: 45%) to the new $580 million first-lien senior secured notes due in 2027 and '###-' rating and '6' recovery rating (0%-10%; rounded estimate: 0%) to the new $357 million third-lien senior secured notes due in 2027. We raised the rating on the company's remaining senior unsecured notes to '###-' from 'D' with a '6' recovery rating (0%-10%; rounded estimate: 0%). Cooper-Standard Automotive Inc. is the issuer of the first-lien senior secured notes...

Research Update