S&P: ArvinMeritor unchanged

Standard & Poor's said its ratings and outlook on ArvinMeritor Inc. (BB-/stable/B-1) are not affected following the company's announcement that it has agreed to sell its Emissions Technologies business to private equity firm One Equity Partners for $310 million.

The agency said that ArvinMeritor has been selling assets to both narrow the company's focus and improve the financial profile and this ongoing effort to improve liquidity and reduce debt was a factor in assigning a stable outlook in our late 2006 downgrade.

While the ET sale is larger than most recent asset sales, S&P said it would still expect that a substantial portion of the cash proceeds will be used to strengthen the balance sheet.

The sale reduces ArvinMeritor's diversity, but also eliminates a significant exposure to stainless steel price fluctuations, S&P noted.

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