S&P: Dana on positive watch

Standard & Poor's said its BB corporate credit and senior unsecured debt ratings on Dana Corp. remain on CreditWatch with positive implications following the company's announcement that it had signed an agreement to sell its automotive aftermarket business to The Cypress Group (unrated) for around $1.1 billion in cash. A third-quarter close is anticipated.

Proceeds will be used for debt reduction, pension plan contributions, and reinvestment in Dana's core business.

By selling its aftermarket business, Dana will be able to focus its resources on its core original equipment operations that include components and systems serving the light vehicle, commercial vehicle, and off-highway vehicle markets, the agency said.

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