S&P lifts Delphi Automotive from junk

Standard & Poor's said it raised the corporate credit rating on Delphi Automotive plc to BBB- from BB+.

The agency also said it removed the rating from CreditWatch, where it was placed with positive implications in November.

The outlook is stable.

S&P also said it lowered the rating on the company's senior secured debt to BBB- from BBB because the company may release collateral for this debt at its discretion after it is assigned an investment-grade corporate credit rating.

The agency also said it raised the rating on Delphi Corp.'s senior unsecured debt to BBB- from BB+.

S&P also withdrew the 1 recovery rating on the senior secured debt and the 3 recovery rating on the senior unsecured debt because the corporate credit rating was raised to investment grade.

The ratings reflect the company's financial risk profile as intermediate and the business risk profile as satisfactory, said Nancy Messer, an S&P analyst.

The rating also incorporates Delphi's strong liquidity and the company's lack of large near-term debt maturities, Messer said in a press release.

"We expect Delphi to continue generating solid earnings and cash flow with stable credit measures despite the weak European automotive market and the company's investments for growth," Messer said.

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