S&P: MetoKote view developing

Standard & Poor's said it believes MetoKote Corp. is negotiating with its lenders to refinance its existing $87 million term loan, which expires Nov. 27.

S&P's current corporate credit rating is CCC+, and the outlook is developing.

If the company does refinance its term loan with a maturity of two years or more and as a result of higher light- and commercial-vehicle demand in North America the agency said it would conclude the company remains cash flow positive. The agency also said it could raise its corporate credit rating to B- from CCC+.

S&P said the outlook would likely be negative to reflect the uncertainty in the company's business environment. On the other hand, the agency said it could lower the rating if the company cannot refinance or extend the maturity of its term loan.

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