S&P upgrades KUKA

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

The outlook is stable.

The upgrade reflects a view that KUKA will continue to show relatively stable profitability in 2015, which should result in further improved credit ratios, S&P said.

S&P also said it raised the rating by one notch due to a positive comparable ratings analysis.

The agency said it believes KUKA’s business risk position is stronger than many peers with weak business risk profiles.

The ratings also reflect the group’s volatile profitability due to its still-high dependency on the cyclical automotive industry, S&P said.

However, cost savings and restructuring over the past few years, combined with volume recovery, have supported the group’s profitability, the agency said.

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