S&P takes positive view on American Axle, rates notes B-

Standard & Poor's said it has revised its outlook on American Axle & Manufacturing Holdings Inc. to positive from developing and affirmed its CCC+ corporate credit rating and other ratings.

S&P said it also assigned its B- issue rating and 2 recovery rating to the company's proposed $400 million senior secured notes.

S&P believes that American Axle's liquidity will improve once proceeds from the notes are used to repay the company's $250 million term loan, reduce amounts outstanding under existing revolving credit facilities and extend debt maturity dates.

The agency said that an upgrade is possible if auto production volumes recover sufficiently and American Axle's largest customer, General Motors, is able to maintain stable light-truck market share next year.

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