S&P: IAC view to negative

Standard & Poor's said it revised the outlook on International Automotive Components Group SA (IAC) to negative from stable and affirmed its B+ corporate credit rating.

The rating reflects the company's aggressive financial risk profile with debt-to-EBITDA ratio expected to be about 4x over the next two years, S&P said.

The company's vulnerable business risk profile reflects its low profitability prospects, meaningful exposure to volatile commodity costs and participation in the volatile and competitive global auto supplier industry, the agency said.

Over the long term, IAC's financial policies will remain aggressive given its concentrated private-equity ownership, S&P said.

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