S&P boosts Kinetek

Standard & Poor's said it raised Kinetek Holdings Corp.'s long-term corporate credit rating to CCC+ from SD and its first-lien revolving credit facility to B- from B with a recovery rating of 2. The issue-level ratings for the company's first-lien and second-lien term loan remain D.

The outlook is negative.

"The upgrade reflects Kinetek's new capital structure with a marginally reduced debt level following the company's debt buyback," S&P analyst Helena Song said in a statemnet.

"The rating actions reflect our expectation that operating conditions will remain challenging and that the company's credit measures will continue to deteriorate. In addition, we are concerned that the company may not meet leverage covenants," she continued.

Ratings reflect the company's highly leveraged financial profile and the competitive and cyclical nature of the global electrical motors and motion controls systems industry in which it operates, the agency said.

The company's well-established market positions in several niches and its low-cost manufacturing capabilities partially mitigate company risks, S&P noted.

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