MEXICO CITY, Aug. 22, 2013 /PRNewswire/ -- Standard & Poor's Ratings Services (S&P) announced that it has upgraded SANLUIS Rassini S.A. de C.V.'s long-term corporate credit rating from 'B' to 'B+' with a 'Stable' outlook.
S&P commented the following:
- Mexico-based auto supplier SANLUIS Rassini's financial management has supported the gradual improvement of credit metrics, and the reduction of its debt.
- Its adequate liquidity and positive cash flow generation provide credit comfort on the company's ability to meet its 2014 debt maturities.
- We are raising our long-term corporate credit rating on SANLUIS Rassini to 'B+' from 'B'.
- The stable outlook reflects our expectations that SANLUIS Rassini will continue to achieve steady top-line growth and improved profitability, mainly driven by the continued recovery of U.S. auto sales.
"This improvement of our rating from S&P reflects both our strong business results as well as our continuous efforts to improve our financial position by lowering costs and reducing debt over the past several quarters," commented SANLUIS Rassini CFO Sergio Visintini.
Commenting on the rationale for the ratings change, S&P noted that, "The rating action reflects SANLUIS Rassini's improved credit metrics and the gradual reduction of debt, supported by the company's effective financial management. It also reflects the company's positive and sustainable medium-term growth prospects amid more favorable industry fundamentals, and new contracts in hand that should lead to stable revenue growth and margins."
"In recent quarters, SANLUIS Rassini has seen tremendous success toward the goal of improved financial performance. Our S&P rating increase further demonstrates that our laser focus on operationally-sound and service-oriented initiatives are working," said Visintini.
SANLUIS Rassini is a leading global designer and manufacturer of suspension and brake components for the automotive industry. As the world's largest producer of suspension components for light commercial vehicles and the largest fully integrated brake disc producer in the Americas, SANLUIS Rassini has seven manufacturing operations strategically located in North America and Brazil. SANLUIS Rassini is a subsidiary of SANLUIS Corporacion, S.A.B. de C.V. For more information, visit www.sanluisrassini.com.
SOURCE SANLUIS Rassini