Fitch lowers Chrysler

Fitch Ratings said it downgraded the issuer default rating of Chrysler LLC to B from B+, with a negative outlook and the senior secured first-lien bank loan to BB/RR1 from BB+/RR1 and senior secured second-lien bank loan to CCC+/RR6 from BB+/RR1.

The downgrade reflects the decline in unit volume and revenue resulting from weak economic conditions, modest share losses, certain strategic initiatives and the effect of these factors on the company's operating performance, Fitch said.

Chrysler's restructuring efforts remain on track, and liquidity is expected to remain adequate over the near term to fund restructuring costs and operating losses through a period of economic weakness, the agency noted.

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