Weekly Downgrade Wrap-Up
As usual, we have a week’s worth of ratings actions (mostly downgrades) on the debt of LBO-backed companies from ratings agencies S&P and Moody’s. This week brought some good news from the debt raters. S&P sees encouragement in the performance of Dana Holding Corp., the giant auto parts maker that Centerbridge bought out of bankruptcy. Meanwhile Moody's feels comfortable enough about the performance of Bain Capital's Sensata Technologies B.V. to upgrade the company's ratings. The ratings agencies served up two more downgrades as well, for companies owned by Kohlberg & Co., Versa Capital Management, Apax Partners and Trimaran Capital Partners. Company: Dana Holding Corp. Sponsor: Centerbridge Capital Partners LP Action: S&P raised its corporate credit rating on Dana to 'B' from 'B-' and raised the debt ratings. The outlook is stable. Highlight: “Dana's earnings and cash flow for the third quarter were better than we expected, reflecting benefits from aggressive restructuring actions after emerging from Chapter 11 in early 2008, despite weak auto sales. In addition, Dana reduced debt by $254 million in the first nine months of 2009 through a Dutch auction, market purchases of debt, and raising funds through a common equity offering. As a result, the company's covenant cushion has improved.”
