Moody's ups Titan outlook to positive

Moody's Investors Service said it has changed the outlook of Titan International, Inc. to positive from stable and affirmed the company's B2 corporate family and probability of default ratings.

The outlook change to positive reflects significant revenue growth and margin improvement during the first half of 2008, and the progress Titan has made toward commencing large mining tire and wheel production, the agency said.

The company's recent revenue growth and margin improvement have stemmed from U.S. import duties now facing Chinese tire manufacturers on off-the-road tires, strong demand from OTR customers, especially agricultural users, and the company's ability to raise prices with higher input costs, the agency noted.

According to the agency, the B2 corporate family rating reflects the company's moderate leverage, low return levels and exposure to cyclical construction and mining end markets.

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