S&P upgrades Steelcase to BBB

Standard & Poor's said it raised its corporate credit and senior unsecured ratings on Steelcase Inc. to BBB from BBB-.

The outlook is stable.

The agency said the upgrade reflects the company's improved profitability and flexibility, which has resulted in it achieving key credit measures in line with the higher rating, and S&P's belief that the company is better positioned to manage its operations through a material downturn in the industry than it was several years ago because it has made substantial progress in improving its cost structure and its end-user market and geographic diversity.

The ratings on Steelcase reflect its leading market position in the office furniture industry, broad distribution capability and strong liquidity position, S&P said.

These factors are somewhat offset by the competitive and cyclical nature of the office furniture industry and the company's sensitivity to raw-material price fluctuations, the agency added.

The pension and lease-adjusted total debt-to-EBITDA ratio was 1.8 times at Feb. 29.

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