S&P drops SKF, debt to BBB

Standard & Poor's said it lowered its long-term corporate credit rating on SKF AB to BBB from BBB+.

The outlook is stable.

At the same time, the agency lowered its issue rating on SKF's senior unsecured debt to BBB from BBB+.

S&P said the downgrade reflects its view that SKF is unlikely to restore credit ratios in 2015 as previously expected. Based on the company's figures for the 12-month period ended March 31, the agency views SKF's current debt protection measures as no longer in line with a BBB+ rating.

For the same period, funds from operations to debt was 22% and free operating cash flow to debt was 10%. S&P therefore removed the positive comparable rating analysis modifier, reflecting the weakened positioning of SKF's credit metrics within the "intermediate" financial risk profile.

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