S&P cuts Keystone outlook to negative

Standard & Poor's said it revised its outlook on Keystone Automotive Operations Inc. to negative from stable, reflecting poor same-store sales growth, a weak operating environment and a significant increase in leverage.

All ratings on the company, including the B corporate credit rating, were affirmed, the agency said.

S&P noted that the ratings on Keystone reflect the company's relatively small EBITDA base, high leverage and continued acquisition activity.

The company is a market leader in the competitive, highly fragmented specialty equipment segment of the automotive aftermarket industry, but this specialty equipment segment represents a relatively small part of the total automotive aftermarket industry, most of which consists of replacement parts, the agency said.

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