Fitch cuts Delphi ratings

Given the potential for a bankruptcy filing by Delphi Corp.'s self-imposed deadline of Oct. 17, Fitch Ratings said it has downgraded the ratings of Delphi, including the issuer default rating to CCC from B-, the senior unsecured notes to CC and the trust preferred securities to CC.

The senior secured bank facilities remain at B.

All ratings remain on Rating Watch negative.

Fitch said it believes the ability of the UAW to influence the restructuring of Delphi is greater through an out-of-court process, thereby providing an incentive for concessions. But the complexity of the three-party negotiations, the short time-frame involved and the uncertainty surrounding GM's strategy in resolving Delphi's situation have heightened the risks of a bankruptcy, Fitch said.

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