Press Release:
S&P: ABB Ltd. $1 Billion Revolving Credit Facility Assigned 'BB+' Long-Term Bank Loan Rating
Press Release
News Article January 2004
S&P: ABB Ltd. $1 Billion Revolving Credit Facility Assigned 'BB+' Long-Term Bank Loan Rating
LONDON, Jan. 6, 2004--Standard & Poor's Ratings Services said today it assigned its long-term 'BB+' bank loan rating to the $1 billion senior unsecured revolving credit facility, which matures in 2006, for Switzerland-based engineering company ABB Ltd (BB+/Positive/B).
Related entities ABB Asea Brown Boveri Ltd. (BB+/Positive/B) and ABB Capital B.V. (BB+/Positive/B) will be the borrowers. The facility is guaranteed by the borrowers as well as ABB Ltd. (ABB) and will be used for general corporate purposes including refinancing.
Pricing for the three-year facility will remain linked with the corporate credit rating on ABB. Covenants include a leverage ratio and an interest coverage ratio. The main nonfinancial covenants include a negative pledge and limitations on subsidiary indebtedness, both of which have significant exceptions.
The loan has been given the same rating as the existing corporate credit rating on ABB because the facility is senior and unsecured and there are no material structural subordination issues.
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