CHICAGO (AP) — Fitch Ratings on Monday reaffirmed automotive parts supplier Johnson Controls Inc.'s investment grade default and long-term ratings and raised its ratings outlook to Stable from Negative.
The ratings agency said the change in outlook reflects the company's recent debt reduction, extensive restructuring and a slowly improving economy.
"JCI's financial profile remains weaker than it was prior to the recession, and leverage remains somewhat high for the ratings. However, the company's restructuring should allow it to be profitable at lower sales volumes and reduce leverage during the next several quarters," said Fitch, in a note to clients.
Fitch affirmed the company's 'BBB' rating, and backed its short-term issuer default rating and commercial paper rating of 'F2.'
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Johnson Controls, based in Milwaukee, had nearly $4 billion of outstanding debt, including $46 million of equity units, as of Sept. 30.
Its shares rose 52 cents, or 2.2 percent, to $24.44 in afternoon trading.