S&P upgrades Visteon

S&P said it upgraded Visteon Corp. to BB from BB-.

The agency also said it revised the recovery rating on the company's secured debt to 2 from 1. The issue-level rating remains at BB+. The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook is stable.

The upgrades reflect the company's ongoing success as a major participant in cockpit electronics, S&P said.

With a focus on this growing segment, Visteon won $5.4 billion in new business in 2016 and launched a record number of new products, the agency explained.

The company's key credit ratios have improved due to its ongoing operational performance and reduced debt levels, S&P added.

Even with the increase in the size of its revolving credit facilities by $100 million, the company's long-term debt has been reduced significantly when compared to historical levels, the agency noted.

This has improved the company's key debt-based credit metrics and lowered its overall level of financial risk, S&P said.

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