Standard & Poor’s, the United States-based financial services company has raised BorgWarner Inc.’s corporate credit rating citing the auto-parts maker’s strong market position in a tough global industry.
“As a result, we are raising the corporate credit rating on BorgWarner to ‘BBB+’ from ‘BBB’”.
The move reflects the ratings agency’s belief that BorgWarner’s strong position in a shaky global market, including in engine- and drivetrain-related products, will allow BorgWarner to continue to maintain its strong operating profits.
In February the company reported that its fourth-quarter profit rose 9.1 percent, buoyed by increased demand for its powertrain technology.
BorgWarner projects it will have $2.5 billion net new-business revenues from 2012 through 2014, almost half of which would be in Europe, with 35% in Asia.
The announcement comes shortly after BorgWarner said it would invest $25 million at its Seneca plant.
BorgWarner and county officials say the new investment over the next five years will lead to the creation of at least 50 new jobs at the Seneca plant over the same time. The plant produces automotive drive trains.