S&P cuts ATU outlook to negative

Standard & Poor's said it revised its outlook on ATU Auto-Teile-Unger to negative from stable, reflecting its increased debt leverage mainly as a result of adverse weather conditions.

At the same time, the agency said it affirmed its B+ long-term corporate credit rating on the company.

The rating action is limited to a negative outlook at this stage, despite the significant deterioration of credit metrics, taking into account the one-off nature of the mild winter of 2006/2007 as the main cause of this, S&P noted.

According to S&P, the ratings continue to reflect ATU's highly leveraged financial risk profile, owing to its high debt levels following the second LBO of the company by Kohlberg Kravis Roberts & Co. in August 2004.

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