S&P upgrades Alfa Laval

Standard & Poor's said it raised the long-term corporate credit rating on Alfa Laval AB to A- from BBB+.

The outlook is stable.

The agency said it upgraded the rating because of the resilience of Alfa Laval's operating performance and strong credit metrics, even in times of significant market downturns.

S&P said it anticipates that the company will maintain its solid cash flow performance and moderate financial policy, balancing expected ongoing acquisitions and shareholder distributions to sustain credit measures commensurate with the rating.

Alfa Laval is very well positioned in areas of future potential growth, such as energy, process, sanitary, marine, pharmaceutical and food, the agency said.

Offsetting these strengths is the group's exposure to demand cyclicality and meaningful competition, S&P said, along with its shareholder-friendly financial policy.

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