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International Automotive Components Group CCR Raised To ‘B-‘, Outlook Negative; Rating Withdrawn At Issuer’s Request

          NEW YORK (S&P Global Ratings) May 10, 2018--S&P Global Ratings today raised its corporate credit rating on global auto component supplier International Automotive Components Group S.A. (IAC) to 'B-' from 'CCC-'. The outlook is negative. 
          Subsequently, we withdrew our 'B-' corporate credit rating on IAC at the company's request. 
          We raised our corporate credit rating on IAC to reflect its reduced risk of default following the completion of a refinancing transaction. As part of the recapitalization, IAC issued $215 million of senior secured notes due April 2023 (unrated) to funds managed by Gamut Capital Management LP, a private equity firm. The company used proceeds to refinance its $300 million 9.125% senior secured notes due June 1, 2018. The rating on IAC reflects our expectation that the company's operational performance will remain steady. It also reflects reduced risk as the company's debt-to-EBITDA will improve and fall below 5x in 2018 per our estimates. The company's soft trim joint venture transaction in late 2017 provided it with a critical infusion of cash, which will allow management to implement its strategic initiatives. The negative outlook reflects our expectation that IAC's free cash flow will turn negative due to the cash restructuring costs, which will increase the company's reliance on its credit facilities.