S&P upgrades GKN to BBB-

Standard & Poor's said it raised its long-term corporate credit rating on GKN Holdings plc to BBB- from BB+ by revising its financial policy modifier to 'neutral' from 'negative'.

The outlook is stable.

S&P said the upgrade reflects its opinion that GKN's focus has shifted toward maintaining stable cash flows amid a less acquisitive growth strategy.

Management's focus on cash generation and maintenance of prudent capital structure has allowed GKN to limit the impact of a wider pension deficit and to accommodate spending on three large acquisitions that it completed in 2011 and 2012. Although dividend payments have steadily increased in recent years, the company has generated adequate free operating cash flow to cover the shareholder payouts, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.