S&P cuts Keystone Auto view to negative

Standard & Poor's said it revised its outlook on Keystone Automotive Operations Inc. to negative from stable.

This action follows the company's addition of a $90 million term C loan to its existing bank facility. Proceeds were used to finance the $63 million acquisition of Reliable Automotive, prefund integration costs, repay part of its revolver balance and cover fees and expenses.

S&P also said it affirmed its B+ corporate credit and bank loan rating. The subordinated rating was also affirmed at B-.

The ratings reflect Keystone's participation in the competitive and highly fragmented specialty equipment segment of the automotive aftermarket industry, relatively small EBITDA base and high leverage, S&P said.

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