Moody's lowers ArvinMeritor

Moody's Investors Service said it downgraded ArvinMeritor's corporate family and probability-of-default ratings to B1 from Ba3, its secured bank obligations to Ba1 (LGD1, 8%) from Baa3 (LGD2, 13%) and unsecured notes to B2 (LGD4, 63%) from B1 (LGD4, 63%). The speculative grade liquidity rating is SGL-2.

The outlook is stable.

The downgrades follow the company's announcement that its earnings for fiscal 2007 will be lower than expected.

"Although these metrics should begin to recover somewhat due to operational initiatives being undertaken and due to a possible rebound in the class 8 truck market during the latter half of 2008, the magnitude and timing of any improvement in metrics is uncertain," Bruce Clark, senior vice president with Moody's, said in a written statement. "Fortunately, the company has a reasonable degree of liquidity as it contends with these difficulties."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.