Alfa Laval, the Swedish maker of fluid controls systems, has had its credit rating raised by Standard and Poor's after the company and its owners raised about $525 million in an initial share sale last month.
Alfa Laval's corporate credit ratings were raised to “BBB-“ from “BB+” and were given a “positive outlook,” the ratings company said in a statement.
Alfa Laval and its owners, including Industri Kapital and Tetra Laval, last month sold 56.5 million shares after cutting the offer price to 91 kronor a share to lure investors to Sweden's biggest IPO since late 2000. The proceeds were three billion kronor ($309 million), which Alfa Laval will use partly to pay back debt.
“The upgrade reflects the recent strengthening of Alfa Laval's financial profile, primarily as a result of an IPO in May 2002,” said S&P's credit analyst Alf Stenqvist said in the statement. “Continued improvements in profitability and a sustained financial profile could lead to higher ratings within the next few years.”