Swiss Auto Supplier Garrett Motion Inc.'s $200 Mil. Debtor-In-Possession Term Loan Rated 'BBB-'

Garrett Motion Inc., operating under the protection of the U.S. Bankruptcy Code Chapter 11 since its voluntary filing on Sept. 20, 2020, has issued a $200 million secured super priority debtor-in-possession (DIP) term loan. We assess Garrett Motion's debtor credit profile (DCP), which indicates the company's capacity and willingness to meet its financial commitments during bankruptcy, at 'bb+'. Under our DIP criteria, we generally cap our rating on DIP instruments at 'BBB-', which limits the number of notches added to the 'bb+' DCP to derive the issue rating to one. We are assigning our 'BBB-' rating to Garrett Motion's DIP term loan. This is a point-in-time rating and does not indicate ratings we may assign to exit facilities or the

...- Garrett Motion Inc., operating under the protection of the U.S. Bankruptcy Code Chapter 11 since its voluntary filing on Sept. 20, 2020, has issued a $200 million secured super priority debtor-in-possession (DIP) term loan. - We assess Garrett Motion's debtor credit profile (DCP), which indicates the company's capacity and willingness to meet its financial commitments during bankruptcy, at '##+'. - Under our DIP criteria, we generally cap our rating on DIP instruments at '###-', which limits the number of notches added to the '##+' DCP to derive the issue rating to one. - We are assigning our '###-' rating to Garrett Motion's DIP term loan. This is a point-in-time rating and does not indicate ratings we may assign to exit facilities or the reorganized firm after it emerges from bankruptcy. Our issuer credit rating on Garret Motion remains at 'D' (default). - The issue rating on Garret Motion's DIP term loan is effective only on the date of this report and we will not review, modify, or...

Ratings Action