S&P ups Allison debt

Standard & Poor's said that it raised the issue-level rating on Allison Transmission Inc.'s senior secured debt to B+ from B. The recovery rating was revised to 2 from 3.

S&P affirmed the B corporate credit rating on the company.

The outlook is stable.

The ratings on Allison Transmission reflect the company's highly leveraged financial risk profile, which overshadows the company's good profitability and strong market shares as the leading U.S. supplier of automatic transmissions for commercial vehicles, the agency said.

The ratings consider Allison's fair business risk profile, reflecting its good market position but also the highly cyclical North American commercial-vehicle supplier business, the agency added.

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