S&P raises KION rating

Standard & Poor's said it raised to BB- from B its corporate credit rating on KION Material Handling GmbH. The outlook is positive.

At the same time S&P raised the issue ratings on KION's existing €650 million and €500 million secured notes to BB- from B.

The recovery rating on KION's existing €500 million term loan credit facility H1 due 2018 and €650 million term loan credit facility H2 due 2020, loaned by the issuer (100% owned special purpose vehicle Kion Finance SA) to Linde Material Handling GmbH and other borrowers, remains at 4, indicating an expectation of average (30%-50%) recovery prospects for lenders in the event of a payment default.

The upgrade reflects KION's significantly lower adjusted debt due to proceeds from ultimate parent KION Group AG's IPO and S&P's expectation of a continued solid operating performance.

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