S&P Global revises Tesla debt outlook to positive

S&P Global Ratings on Wednesday revised its outlook on Tesla Inc. bonds to positive, from negative, pinning it on the Silicon Valley car maker’s “recent debt reduction and stronger-than-expected cash flow.” The debt ratings agency kept its rating on Tesla debt at B-, about the middle of the pack in junk bonds. “The positive outlook reflects an increased likelihood that Tesla’s credit metrics will improve more than our base-case projection because of higher demand and manufacturing-related efficiencies,” S&P Global said. Tesla stock added to gains after the news, and was recently trading 2% higher. The shares have lost nearly 3% this year, contrasting with gains of 23% and 18% for the S&P 500 index and the Dow Jones Industrial Average.

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