S&P affirms Tenneco, ups some notes to BB-

Standard & Poor's said it affirmed the BB- corporate credit rating on Tenneco Inc. and removed ratings from CreditWatch with negative implications, where they were placed on March 17, as a result of the American Axle & Manufacturing Holdings Inc. (BB/Watch negative) strike.

The outlook is stable.

The agency raised Tenneco's senior unsecured notes to BB- from B+ and assigned 4 recovery ratings. The rating on senior subordinated notes remains at B with a 6 recovery rating.

S&P said the affirmation reflects its view that credit measures will remain within expectations for the rating level in the face of very challenging conditions for the North American auto sector in 2008 and perhaps 2009.

The agency said it expects the adjusted debt-to-EBITDA ratio to remain at less than 4 times.

Ratings reflect the company's weak business profile and highly leveraged but stable financial profile, S&P noted.

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