Moody's cuts Federal-Mogul

Moody's Investors Service said it lowered the corporate family and probability of default ratings on Federal-Mogul Corp. to B2 from B1.

In a related action, the ratings on the company's senior secured term loans were lowered to B1 from Ba3 and the rating on the senior secured asset-based revolver was lowered to Ba3 from Ba2.

The speculative grade liquidity rating was also lowered to SGL-3 from SGL-2. The outlook is stable.

Moody's said the lowering of the corporate family rating reflects the company's weakening credit metrics as lower European automotive demand and weaker commercial vehicle demand in North America have pressured the company's operating performance.

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