S&P boosts Allegheny

Standard & Poor's said it raised its corporate credit rating on Allegheny Technologies Inc. to BB+ from BB.

The outlook is positive.

At the same time, S&P said it raised its rating on the company's senior unsecured debt to BB+ from BB-, reflecting the improved position of unsecured creditors in the capital structure as the company's revolving credit facility is now unsecured.

All ratings were removed from CreditWatch, where they were placed with positive implications on March 13, the agency noted, adding that the upgrade reflects the company's meaningful improvement in operating and financial performance due to strong demand in its key end markets, its shift away from commodity-based products and pricing and its improved cost structure.

According to S&P, the ratings on Allegheny Technologies reflect the company's exposure to highly competitive and cyclical businesses, a somewhat aggressive financial profile that includes significant spending on capacity expansion during the next several years and significant postretirement obligations.

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