S&P lifts Kaiser to positive

Standard & Poor's said it revised the outlook on Kaiser Aluminum Corp. to positive from stable.

The agency also said it affirmed Kaiser's BB- corporate credit rating.

The affirmation and outlook revision reflect an expectation that Kaiser's operating performance will continue to benefit from strong demand in its aerospace and automotive end markets, S&P said.

In this environment, the agency said it expects credit metrics to be good for the rating with a debt-to-EBITDA ratio of about 2x.

This assumes that acquisitions, shareholder rewards and other discretionary outlays are funded primarily with cash on hand or cash flow from operations, S&P said.

The company's revenue sources also are cyclical, the agency added, and EBITDA has exhibited a high level of volatility in the past.

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