Fitch: Visteon likely to be adversely affected

Fitch Ratings said that the announcement by Ford regarding significant cutbacks to the fourth quarter production schedule should adversely affect Visteon Corp.'s operating and cash flow performance for 2006.

The agency said that although Visteon continues to reduce its exposure to global Ford production volumes, financial results over the near term will remain leveraged to Ford production in North America and Europe.

Fitch added it believes Visteon will be free cash flow negative in 2006 and challenged to produce free cash flow in 2007 owing to lower sustained production levels at Ford, Visteon's extended restructuring program and industry pressures.

Visteon's issuer default rating of CCC is unaffected, as the risk of unanticipated Ford production cuts had already been factored into the rating, the agency noted.

© 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.