S&P raises BorgWarner corporate credit rating

NEW YORK (AP) -- Standard & Poor's Ratings Services is lifting auto supplier BorgWarner Inc.'s corporate credit rating, citing improving financial measurements and demand for better fuel economy in cars and trucks.

The ratings agency boosted the automotive parts supplier's corporate credit rating and the ratings on its senior unsecured debt one notch in investment grade status to "BBB+" from "BBB." BorgWarner's outlook is stable.

In February the company reported that its fourth-quarter profit rose 9.1 percent, buoyed by increased demand for its powertrain technology.

S&P said that BorgWarner's engine- and drivetrain-related products should continue to help the Auburn Hills, Mich., company's profit margins. The ratings agency also believes that the need to come up with ways to deal with rising gas prices will also help BorgWarner.

"We expect BorgWarner to continue benefiting from global efforts to improve the fuel economy of passenger vehicles, leading to increasing demand for many of their products that make engines more efficient," S&P credit analyst Nancy Messer said in a statement.

Published: Thu, Apr 12, 2012