S&P ups Standard Motor outlook to positive

Standard & Poor's said it revised its outlook on Standard Motor Products Inc. to positive from negative, reflecting the company's improved financial flexibility, EBITDA margins, cash flow generation and the potential to sustain these results and enhance credit measures in the next two years.

Following completion of the lengthy and challenging integration of the Dana Engine Management acquisition, Standard Motor has begun to achieve margin expansion through facilities rationalization, manufacturing initiatives and selective price increases, the agency said.

S&P added that the ratings on Standard Motor, including the B- corporate credit rating, were affirmed.

The ratings reflect Standard Motor's high leverage, a $90 million debt maturity in 2009 and weak business risk profile, the agency said.

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