We are revising upward our base-case EBITDA forecast through 2018 for U.S. bicycle components maker SRAM LLC due to anticipated continued improvements in operating performance. We are revising our outlook to positive from stable and affirming all ratings. We would consider higher ratings if original equipment manufacturer (OEM) and aftermarket volumes continue on the current upward trend past the anniversary of Red eTap and Eagle product launches, and we become confident that revenue and EBITDA growth can cause lease-adjusted leverage to be sustained below our 5x upgrade threshold incorporating high future potential volatility in the business. On Sept. 14, 2017, S&P Global Ratings revised its outlook on Chicago-based SRAM LLC to positive from stable and affirmed the 'B'corporate credit rating.
