Moody's lowers BorgWarner

Moody's Investors Service said it lowered BorgWarner Inc.'s senior unsecured debt rating to Baa3 from Baa1 and left the rating under review for downgrade.

The action is prompted by the rapidly eroding outlook for auto parts suppliers and lower demand, according to the agency.

Moody's also noted the company faces refinancing needs for an existing bond as well as its bank credit facility during 2009.

Ratings reflect the company's well-established position, technology leadership, favorable margins and substantial levels of free cash flow, the agency said.

Through the 12 months ended Sept. 30, BorgWarner's debt-to-EBITDA ratio was 1.5x.

© 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.