Standard&Poor's Ratings Services has assigned its 'BB-' corporate credit rating to replacement auto parts distributor LKQ Corp., which is acquiring the operations of unrated Keystone Automotive Industries Inc. for $811 million. The outlook is stable. The transaction should close in the fourth quarter of 2007. In addition, Standard&Poor's has assigned its loan and recovery ratings to LKQ's proposed six-year, $100 million senior secured revolving credit facility and six-year, $650 million secured term loan A consisting of a US$610 million loan and a C$40 million loan. The facilities are rated 'BB+', two notches above the corporate credit rating, with a '1' recovery rating, indicating expectations of very high (90%-100%) recovery in the event of a payment default.
