Moody's rates Visteon notes Ba1

Moody's Investors Service said it assigned its Ba1 rating to the senior unsecured 10-year notes of Visteon Corp., which will be issued this month under its existing shelf registration.

The outlook continues to be stable.

Moody's said the rating reflects Visteon's relatively strong capital structure from a book leverage perspective, current liquidity of about $953 million of cash and marketable securities at year-end 2003, the anticipated benefits of the renewal in late 2003 of the Ford/Visteon agreements and related UAW labor accord, and the relative stability provided by its book of business with its former parent, Ford.

On the other hand the company faces the highly competitive and cyclical nature of the automobile component and systems industry with its ongoing pressure from OEMs for price concessions, a concentration of business with Ford, and continuing challenge of returning to meaningful profitability.

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