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Aftermarket Technology Ratings Raised by S&P; Outlook Stable

20 January 1998

Aftermarket Technology Ratings Raised by S&P; Outlook Stable

    NEW YORK, Jan. 20 -- Standard & Poor's today raised its
rating on Aftermarket Technology Corp.'s subordinated debt to single-'B' from
single-'B'-minus. The company's corporate credit rating was raised to double-
'B'-minus from single-'B'-plus.
    The outlook is stable.
    The upgrades reflect the improvements that have occurred in ATC's
financial position and business profile following the company's completion of
two public share offerings (one in late 1996 and one last fall), continued
solid operating performance, and successful integration of a number of
acquisitions over the past two years. ATC is primarily a remanufacturer and
distributor of transmission and other drive train products in North America.
It distributes its products to independent transmission rebuilders, OEM
customers, and automotive parts retail chain stores for use in the repair of
vehicles during both the warranty and post-warranty period. ATC has grown
significantly over the past five years and today is one of the larger
participants in a very fragmented industry.
    ATC has been contributing to the consolidation of the industry with an
active acquisition program. It is expected to continue to pursue acquisitions
in order to bolster its geographic presence and customer relationships. Future
acquisitions are expected to be similar in size to those that have occurred
over the past two years. ATC has reduced its debt leverage significantly over
the past few years through stock offerings and retained earnings. Debt/capital
is currently estimated to be in the 45%-50% range, down significantly from the
63% level at the end of 1996. While acquisitions may cause a temporary
increase in debt leverage from time to time, the company is expected to
maintain a more moderate financial profile than it has in the past. On
average, debt to capital is expected to remain in the 45%-50% range.

    OUTLOOK: STABLE
    Ongoing investment activity limits upside rating potential. Downside risk
is limited by the company's increased financial flexibility and solid niche
business position. -- CreditWire.

SOURCE  Standard & Poor's CreditWire