8 million of factoring facilities, which we assume to be drawn by the year of default.
-- Six months of prepetition interest. The remaining value would, in our view, enable the unsecured lenders (of the GBP1 billion-equivalent notes, the GBP500 million notes, and the GBP551 million of debt under the RCF) to achieve recovery of 30%-50%, resulting in a recovery rating of '4'. Outlook The positive outlook reflects our view of a more than one-in-three possibility of an upgrade over the next 12 months if JLR maintains FFO to debt well above 25%, our target for the current rating. This could happen if demand for premium cars remains supportive--in line with our expectation--, the product renewal of Land Rover and Jaguar is successful, the deterioration in profit margin is minimal, and if cash burn is limited to about GBP200 million over fiscal 2013. We see a number of risks, however, that could jeopardize this positive scenario, including a lack of success of the new product range or of the repositioning of Jaguar, and adverse economic developments across JLR's markets. We will monitor JLR's cash flow generation over the coming quarters. We could revise the outlook to stable if JLR's operating performance falls below our base-case expectations. This could occur if growth in emerging markets weakens or in the event of a global recession. In addition, a lack of success of the new product range or the repositioning of the Jaguar brand could also negatively affect JLR's financial results. We could also revise the outlook to stable if JLR fails to achieve revenue growth of at least 10% and EBITDA margin of 12% in fiscal 2013. Related Criteria And Research
-- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
-- Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 Ratings List Upgraded
To From Jaguar Land Rover PLC Corporate Credit Rating BB-/Positive/-- B+/Positive/-- Jaguar Land Rover PLC Senior Unsecured* BB- B+ Recovery Rating 4 4 *Guaranteed by: Land Rover Exports Ltd., Jaguar Cars Ltd., Jaguar Car Exports Ltd., Jaguar Land Rover North America LLC and Land Rover. Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. (New York Ratings Team)