S&P affirms Aftermarket Technology ratings

Standard & Poor's said it affirmed its BB- corporate credit rating on Aftermarket Technology Corp., including the company's BB- senior secured debt, following the company's announcement of its plan to use a portion of its cash balance to repurchase up to $60 million of common stock.

The outlook on the Westmont, Ill.-based company is stable.

S&P said the stock repurchase, if transacted as planned, is expected to somewhat diminish the company's creditworthiness. However, Aftermarket Technology's credit protection measures would remain adequate for the corporate credit rating.

The company's positive free cash flow generation, partly offset by the company's below-average business risk profile, supports the rating affirmation. The rating affirmation reflects what S&P said is its expectation that the company will continue to balance strategic objectives with a moderate financial policy.

Aftermarket Technology is expected to maintain total debt to EBITDA in the 3x-3.5x range, after the stock repurchase and to incorporate any acquisitions, which should be relatively modest in size.

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