PE Debt Watch (Upgrades & Downgrades)
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies by Moody's Investors Service Standard & Poor's Ratings Services. This week Moody’s rated an “aggressive” dividend recap, a move that seems to be back in vogue and totally uncontroversial again, with as often as we’re seeing them in recent weeks. In other bizarro news, an auto parts company was upgraded. What is this, 2006? Company: American Axle Sponsor: Blackstone Group Action: S&P raised its corporate credit rating on American Axle to 'B-' from 'CCC+'. Highlight: "The upgrade reflects our opinion that American Axle's liquidity has improved and that the company is now less likely to need to financially restructure," said Standard & Poor's credit analyst Lawrence Orlowski. Supporting this view is our assumption that light-vehicle production in North America is starting to recover.
