Moody's reviews American Axle

Moody's Investors Service said it placed under review for downgrade American Axle & Manufacturing Holdings, Inc.'s corporate family and probability-of-default ratings at Ba3 and unsecured guaranteed convertible notes at Ba3 (LGD4, 56%).

American Axle & Manufacturing, Inc. has unsecured guaranteed notes and unsecured guaranteed term loan rated at Ba3 (LGD4, 56%).

The speculative grade liquidity rating was lowered to SGL-2 from SGL-1.

Moody's said the review would consider the potential near-term implications of the protracted work stoppage by American Axle's United Auto Workers employees on the company's financial metrics and liquidity, balanced against the potential long-term benefits of any eventual settlement.

The company has made progress in reducing its cost structure as a result of recent restructuring initiatives. As of Dec. 31, the issuer's debt-to-EBITDA ratio was 2.4 times.

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