Fitch affirms Sifco

Fitch Ratings said it affirmed Sifco SA's foreign- and local-currency issuer default ratings at B-, long-term national rating at BB(bra) and $75 million senior unsecured notes due 2016 at B- with a recovery rating of RR4.

The RR4 recovery rating on its unsecured debt issuance reflects a 31% to 50% recovery in a default.

The outlook is stable.

The ratings reflect the company's high financial leverage and business risk in the cyclical automotive business, Fitch said.

With a market share of more than 95%, Sifco is well positioned to benefit from the increasing demand in Brazil's automotive parts sector over the next few years, the agency said.

The ratings also consider its volatile operational margins, despite of the improvements in customer and products diversification over the past year, Fitch said.

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