S&P Raises Outlook On Auto Parts Supplier Tenneco

NEW YORK (AP) — Standard & Poor's Ratings Services on Monday raised its outlook on the debt of Tenneco Inc., which makes pollution and ride control systems for cars, because of its relatively strong second-quarter results and improving prospects.

The agency, which raised its outlook to "Positive" from "Negative" and affirmed its "B-" rating on Tenneco debt, said the Lake Forest, Ill., company's second-quarter results were better than expected.

The company swung to a loss of 72 cents per share from a profit in the year-earlier period of 26 cents per share.

But adjusted for one-time items, the company lost 22 cents per share — better than the 51-cent loss analysts polled by Thomson Reuters had expected. Such expectations typically exclude one-time items.

"The outlook revision reflects our expectation that operating results will improve more quickly than we expected thanks to greater manufacturing efficiencies, assorted restructuring initiatives, and tighter cost controls," said Standard & Poor's credit analyst Lawrence Orlowski.

"As a result, we believe credit measures could return to levels consistent with a higher rating, and liquidity also will improve."

In aftermarket trading, shares rose 1 cent to $15.71 after losing a cent in the regular session.