S&P pulls Magna from watch

S&P said it affirmed its ratings for Magna International Inc., including the A- issuer rating, and removed them from negative watch. S&P placed the ratings on CreditWatch with negative implications on April 6 and assigned a negative outlook.

“The affirmation primarily reflects our view that credit measures will improve meaningfully in 2021 after a very challenging 2020 for the auto industry,” S&P said in a press release.

The outlook mirrors the risk of a downgrade if the agency expects adjusted debt-to-EBITDA and adjusted free operating cash flow (FOCF)-to-debt to stay above 1.5x or well below 40%, potentially due to a slower-than-anticipated recovery in demand or operating performance, S&P said.

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