Amadeusz Juskowiak

Navistar nav debt upgraded by sp

Standard and Poors Corp said it upgraded 500 mln dlrs of debt of Navistar International Corp and its unit Navistar Financial Corp

Raised were the companies senior debt to BB from B and subordinated debt to Bplus from CCCplus

S and P cited Navistars recent issuance of 104 mln shares of common stock and planned redemption of 515 mln dlrs of debt The recapitalization would save Navistar about 86 mln dlrs in annual interest expense the rating agency said

However the ratings remain speculative because of severe pricing pressures in the trucking industry S and P stressed