S&P raises Duerr

Standard & Poor's said it raised the long-term corporate credit rating on Duerr AG to B+ from B and on its €200 million 2011 subordinated bond to B- from CCC+. Ratings were removed from CreditWatch where they were placed with positive implications on June 18.

The outlook is stable.

The agency said the action reflects Duerr's improved credit profile following continued strengthening of its operating performance, improved liquidity position and a recent capital increase.

For the 12 months to June 30, the issuer's adjusted debt-to-EBITDA ratio is 2.9x pro forma for the equity increase-related debt reduction.

Ratings are constrained by the group's highly leveraged although improved financial profile, its exposure to the cyclical automotive industry and its challenging position as a supplier to price-aggressive original equipment manufacturers, the agency said.

These factors are partly mitigated by the group's leading market positions and widely recognized expertise in its core markets, good geographic diversity, improving profitability and good liquidity, S&P noted.

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