S&P upgrades Kemet

Standard & Poor's said it raised the corporate credit rating on Kemet Corp. to B+ from B, along with the senior secured debt rating to B+ from B with a recovery rating of 4, indicating 30% to 50% recovery in a default.

The outlook is positive.

The rating reflects an expectation that Kemet will experience modest revenue growth in the near term and relatively stable profitability and leverage despite highly competitive and cyclical industry conditions, S&P said.

The company will sustain credit measures commensurate with a significant financial risk profile while it pursues restructuring activities related to its film and electrolytic division during 2011, the agency said.

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