Fitch rates Dana senior debt BB

Fitch Ratings said it has initiated coverage on Dana Corp. and assigned a rating of BB to Dana's senior unsecured debt.

The outlook is positive.

Fitch said the rating reflects an improved operating profile and a strengthening balance sheet characterized by significant debt reduction and healthy cash balances. Over the past several years, Dana has sharpened its strategic focus which has resulted in significant restructuring and divestiture programs.

Furthermore, Dana's current capital structure still has significant financial leverage, and an under funded pension position will continue to require cash contributions.

Fitch noted the positive outlook reflects the potential for further balance sheet improvement from the announced divestiture of the automotive aftermarket operations as well as continued expansion of free cash flow resulting from margin enhancement.

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