S&P upgrades Remy, loan to BB-

Standard & Poor's said it raised its corporate credit rating on Remy International Inc. to BB- from B+.

The outlook is stable.

At the same time, the agency raised its issue-level rating on the company's $300 million senior secured term loan to BB- from B+ and revised the recovery rating to 3 from 4, indicating an expectation for meaningful recovery (50%-70%) in the event of a payment default.

"The upgrades reflect Remy's improving leverage and cash flow, which resulted in our assessment of the company's financial risk as 'significant'," S&P credit analyst Lawrence Orlowski said in a news release.

However, Remy has a "weak" business risk profile assessment, reflecting the cyclical, highly competitive industry in which it operates, the agency said.

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