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Allison Transmission Inc. Dec 11
Standard & Poors, Dec 2011
Abstract
Good profitability; Strong market shares; and Fair diversity among truck, bus, off-highway, and military markets. Cyclical and currently sluggish commercial-truck demand; Limited geographic diversity; High fixed costs; and Elevated leverage despite debt reduction. The ratings on Indianapolis-based global commercial-vehicle component supplier Allison Transmission Inc. reflect Standard & Poor's Ratings Services' view that its adjusted leverage is likely to be sustained at about 5x or less, despite a somewhat sluggish recovery anticipated in its end-markets in 2012. Our expectation incorporates our view of Allison's positive cash flow generation prospects and our revised assessment of its financial risk profile as 'aggressive' (as per our criteria), compared with our previous 'highly leveraged' assessment. The upgrade also reflects our continued assessment of the company's...
Companies mentioned in this report are: Allison Transmission Inc.
Action: Upgraded
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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