S&P affirms Desc ratings

Standard & Poor's said it affirmed its B+ long-term foreign and local currency corporate credit ratings on Desc SA and its auto parts subsidiary, Desc Automotriz SA.

S&P said it also raised its rating on Desc's notes due 2007 to B+ from B. The rating assigned to the notes reflects the new guarantee structure that includes the guarantee of a number of Desc subsidiaries and asset collateral that mitigates the structural subordination of the notes.

The outlook is negative.

"The rating actions reflect the completion of the company's debt restructuring," said S&P credit analyst Jose Coballasi. "The rating actions also consider a proposed capital increase that would raise $248 million that will be used to pay down debt."

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