Moody's affirms Aftermarket Technology

Moody's Investors Service said it affirmed Aftermarket Technology Corp.'s Ba3 corporate family and senior secured bank credit facilities at Ba3.

The outlook remains stable.

While the company has lowered its leverage through the reduction of indebtedness, improved its earnings, and generated strong free cash flow and healthy interest coverage over the last year, the ratings also consider the modest scale of the company's two distinct business lines, continued customer and geographic concentrations and the potential for significant deviation in future performance if a critical customer reduces volume or seeks atypical pricing concessions, the agency said.

Moody's added the ratings continue to incorporate the company's strong business position within its drivetrain re-manufacturing segment, a profitable and growing logistics operation that is not capital intensive and the stable nature of its repair/warranty services in the automotive sector, which is viewed as only indirectly affected by the cyclical production and structural issues currently influencing the automotive supplier industry.

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