S&P ups Stoneridge notes to B+

Standard & Poor's said it revised its outlook on Stoneridge Inc. to positive from negative and affirmed its BB- corporate credit ratings on the company. In addition, S&P affirmed its BB senior secured debt rating on Stoneridge and assigned a recovery rating of 1.

S&P also raised its senior unsecured rating on Stoneridge's $200 million senior notes to B+ from B, reflecting the enhanced position of these creditors due to the company's recent pay down of senior secured debt.

The actions reflect the potential for an upgrade within the next one to two years, the agency said, if Stoneridge strengthens its financial profile through continued free cash flow generation and a disciplined approach to acquisitions.

S&P said the ratings on Stoneridge reflect the company's below-average financial profile and exposure to the highly competitive automotive and commercial vehicle industries, mitigated by its diversified revenue base, growing demand for the type of products it produces, and free cash flow generation.

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