Sandvik's performance is strengthening on the back of end-market recovery and cost-savings measures. Sandvik has also announced it closed the divestment of its Process Systems business, and we understand it will likely use some of the proceeds to reduce debt, thereby further enhancing its credit profile. We are therefore raising our long-term ratings on Sandvik and its debt to 'BBB+' from 'BBB' and affirming our 'A-2' short-term ratings. In addition, we are raising our Nordic regional scale rating on Sandvik to 'K-1' from 'K-2'. The stable outlook reflects our expectation that the company will continue its deleveraging efforts, while maintaining EBITDA margins above 18% and funds from operations to debt at above 45%. On Dec. 4, 2017, S&P Global Ratings
