S&P ups Aftermarket Technology view to positive

Standard & Poor's said it revised its outlook on Aftermarket Technology Corp. (ATC) to positive from stable.

The outlook revision reflects the company's potential for an upgrade within two years if its fairly new management team can demonstrate sustained improved credit measures and a disciplined approach to its potential acquisitions, S&P said.

The agency said it also affirmed its BB- corporate credit rating and its BB- senior secured debt rating on ATC.

The ratings reflect the company's aggressive financial risk profile and weak business profile, characterized by its exposure to highly competitive end markets, its relatively small scope and scale and its customer concentration, the agency noted.

These negative factors are partly offset, S&P said, by the company's strong position in the dealer market for remanufactured transmissions, where it has a market share greater than 70%.

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