Standard & Poor's Affirms Rating on Alfa Laval AB-Reuters

Reuters reported that Standard & Poor's (S&P) announced that it has assigned 'BBB+' long-term issuer credit rating to Alfa Laval AB. The outlook is positive. The rating reflects an intermediate business risk profile and a modest finical risk profile. Support for the rating comes from the group's leading market positions, good cost flexibility, strong profitability, a high share of stable aftermarket sales, and a fairly diverse earnings base. In addition, the Company enjoys strong and stable cash generation and demonstrates good liquidity management. S&P considers the Company's liquidity position to be strong. The positive outlook reflects the possibility that S&P could raise the rating if the Company's financial performance continues to substantially exceed the credit metrics S&P considers commensurate with the current rating, including acquisitions and shareholder distributions. S&P could revise the outlook to stable if the Company fails to meet its targets owing to larger-than-expected debt-financed acquisitions, high shareholder payouts, or a weaker operating performance.