S&P ups Itron

Standard & Poor's said that it raised the corporate credit rating on Itron Inc. to BB from BB- and the issue-level rating on the company's senior secured credit facilities to BBB- from BB+. The recovery rating is 1, indicating very high (90%-100%) recovery in a payment default scenario.

S&P also raised the rating on the company's subordinated notes to B+ from B. The recovery rating on the subordinated notes remains 6, indicating the expectation that lenders would receive negligible (0%-10%) recovery in a payment default scenario.

The outlook is stable.

The upgrade on Itron reflects the company's continued debt reduction, good operating performance and good credit measures, including funds from operations to total debt at 44% as of March 31, the agency said.

The ratings also reflect Itron's significant financial risk profile and fair business risk profile as a supplier of products and services to electric, gas and water utilities, the agency added.

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