S&P upgrades Kaiser Aluminum

Standard & Poor's said it raised its corporate credit rating on Kaiser Aluminum Corp. to BB from BB-. The outlook is stable.

S&P simultaneously raised its rating on Kaiser's $225 million 8¼% senior notes due 2020 to BB from BB-. The recovery rating on the notes remains 3, reflecting an expectation of a meaningful (50%-70%) recovery in the event of a payment default.

"The stable outlook reflects our expectations that favorable trends in the aerospace and automotive markets will increase profitability and free cash flow generation over the next two years," said S&P credit analyst Amanda Buckland in a news release. "In addition, the company's recent capacity expansion and various upgrades should improve operational efficiency to meet near-term demand without significant capital spending."

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