Research Update: Superior Industries International Inc. Outlook Revised To Stable From Negative On Refinancing; 'B-' Rating Affirmed

Superior Industries International Inc. announced the refinancing of its senior secured credit facilities to address near-term debt maturities and alleviate pressure on its liquidity position. Therefore, we revised our rating outlook to stable from negative and affirmed our 'B-' issuer credit rating. Simultaneously, we assigned our 'B-' issue-level rating and '3' recovery rating to Superior's new $60 million cash flow revolver and $400 million term loan. The '3' recovery score indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a payment default. Our '5' recovery rating on Superior's senior unsecured debt, indicating modest recovery (10%-30%; rounded estimate: 20%), is unchanged. We withdrew our rating on the company's previous term loan, which was repaid in full

...- Superior Industries International Inc. announced the refinancing of its senior secured credit facilities to address near-term debt maturities and alleviate pressure on its liquidity position. - Therefore, we revised our rating outlook to stable from negative and affirmed our 'B-' issuer credit rating. - Simultaneously, we assigned our 'B-' issue-level rating and '3' recovery rating to Superior's new $60 million cash flow revolver and $400 million term loan. The '3' recovery score indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a payment default. Our '5' recovery rating on Superior's senior unsecured debt, indicating modest recovery (10%-30%; rounded estimate: 20%), is unchanged. - We withdrew our rating on the company's previous term loan, which was repaid in full at close of the refinancing. - The stable outlook reflects our view that the company should sustain discretionary cash flow (DCF) near break-even in our forecast and maintain...

Research Update