S&P upgrades KUKA

Standard & Poor's said it raised the long-term corporate credit rating on KUKA AG to B+ from B.

The agency also said it raised the rating on the group's second-lien debt to B from B-. The recovery rating remains unchanged at 5.

The outlook remains positive.

The upgrade reflects KUKA's order intake and consistent earnings growth in the past few quarters, which have increased its cash generation and improved its credit measures, S&P said.

The solid order book and track record of successful working capital management augurs well for stable earnings and cash generation, S&P said.

The agency also said it believe the company will benefit from the expansion plans of its main customers in growth markets such as North America, Eastern Europe and Asia Pacific.

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