S&P boost Adient

S&P said it raised its ratings for Adient plc and its unsecured debt to BB from BB- and its secured debt to BBB- from BB+.

“The upgrade reflects Adient's improved credit metrics, supported by stronger profitability, debt paydown, and our expectation of more consistent FOCF. The company's profits and cash flow exceeded our earlier expectation primarily due to a stronger recovery in light vehicle sales in Europe and China. In addition to lower volatility at customers due to improving the supply chain, Adient has been successful in passing on elevated costs to offset inflationary pressures while improving its operating efficiency,” S&P said in a statement.

The agency noted Adient narrowed its leverage to 2.1x in 2023 from 3x in 2022.

The outlook is stable.

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