S&P: Sensata view to positive

S&P said it revised the outlook on Sensata Technologies BV to positive from stable.

The agency also said it affirmed the company’s BB corporate credit rating.

The BBB- rating on the senior secured debt and 1recovery rating are unchanged, indicating 90% to 100% expected default recovery.

The BB rating on the senior unsecured notes and 4 recovery rating also are unchanged, indicating 30% to 50% expected default recovery.

The outlook revision reflects a view that Sensata is making good progress on integrating large acquisitions from 2014 to 2015 and is focused on increasing margins and paying down debt, S&P said.

While Sensata’s acquisitions of CST and Schrader made sense strategically, the acquisitions significantly increased its leverage, the agency explained.

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