S&P lifts Duerr outlook to positive

Standard & Poor's said it revised Duerr AG's outlook to positive from stable and affirmed its B long-term corporate credit rating.

The outlook revision reflects Duerr's improved profitability and cash generation, the agency said, adding that the group has strengthened its order book, which gives S&P confidence that it can sustain this improvement over time. After the deep restructuring begun in 2005, the group is now controlling costs and order intake more stringently. Consequently, operating profit has increased and risk diversification has improved.

The agency said the rating reflects Duerr's weak profitability, track record of negative free operating cash flow generation and challenging position as a supplier to price-aggressive original equipment manufacturers.

Positive rating factors include Duerr's leading global position, widely recognized expertise in its core markets and increasing geographic diversification, S&P added.

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