S&P upgrades J.B. Poindexter

S&P said it raised its corporate credit rating on J.B. Poindexter & Co. Inc. to BB- from B+.

The outlook is stable.

At the same time, the agency raised its issue-level rating on the company's $225 million senior unsecured notes to BB- from B+. The 3 recovery rating remains, reflecting an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P said the upgrade reflects the continued improvement in Poindexter's earnings, which–in combination with its strong cash flow generation–contributed to stronger credit ratios than previously expected, including an S&P-adjusted FFO-to-debt metric of 26% as of Sept. 30, 2017, up sharply from the previous expectation of 18%-20%.

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