S&P may up Tower Automotive

Standard & Poor's said it placed the B corporate credit and senior secured debt ratings on Tower Automotive LLC on CreditWatch with positive implications.

The watch placement is based on an expectation that the company could pay down about $93 million in outstanding debt from the net proceeds of its planned initial public offering, S&P said.

As global vehicle demand continues to recover, the agency said it expects company sales and profitability to rise in 2010 and 2011, the agency said.

The agency said it believes Tower Automotive's credit metrics will improve and could be consistent with a higher rating.

Operating results will continue to reflect what is considered to be Tower's aggressive financial risk profile and weak business risk profile, S&P said.

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