S&P lifts European Bearing

Standard & Poor's said it raised the long-term corporate credit ratings on OJSC European Bearing Corp. to BB- from B+, along with the Russia national scale rating to ruAA- from ruA+.

The outlook is stable.

The upgrade primarily reflects an improvement in the company's credit metrics and liquidity position over the past two years to levels considered commensurate with a BB- rating, S&P said. Specifically, the group's adjusted debt-to-EBITDA is comfortably below 2x, the agency said, and it has adequate liquidity.

The upgrade also incorporates an anticipation that it will once again post a solid operating performance in 2013, continuing the trend in recent years, S&P added. This is because there are supportive economic conditions in Russia and because the Russian federal government sees the rail and aviation sectors as nationally important and strategic, the agency said.

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