S&P revises Meritor to positive

Standard & Poor's said it revised its outlook on Meritor Inc. to positive from stable and affirmed all of its ratings, including the B+ corporate credit rating.

"The outlook revision reflects that, despite some top-line headwinds caused by potentially lower commercial vehicle demand in some of the company's end markets and the negative translation effects of the stronger U.S. dollar, Meritor has continued to gradually improve its operating performance," S&P credit analyst Robyn Shapiro said in a news release.

"Through continued material cost reductions, lower labor costs, and improved pricing, we believe that Meritor will sustain or further improve its EBITDA margins while maintaining positive FOCF during fiscal-year 2016."

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