S&P lifts Ovako to positive, rates notes B-

S&P said it revised the outlook on Ovako Group AB to positive from stable.

The agency also said it affirmed the company's B- long-term corporate credit rating.

S&P also said it affirmed the B- rating on the €300 million senior secured notes due in 2019, issued by Ovako AB, a wholly owned subsidiary of Ovako Group AB.

The agency also said it assigned a B- rating to the proposed €300 million senior secured notes due in 2022 to be issued by Ovako AB.

The proceeds will be used to refinance the company's existing senior secured notes due 2019.

The recovery rating on the existing notes due 2019 and on the proposed notes due 2022 is 4, indicating 30% to 50% expected default recovery.

The outlook revision reflects an expectation that strong earnings momentum may continue into the second half of 2017, resulting in stronger full-year EBITDA and free cash flow generation than previously forecast, S&P said.

The agency also said it expects a more comfortable debt-maturity profile after the pending bond refinancing.

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