Fitch cuts Tenneco, ArvinMeritor, American Axle

Fitch Ratings said it has downgraded the issuer default ratings of Tenneco, ArvinMeritor and American Axle as follows: American Axle to B- from B; ArvinMeritor to B- from B; and Tenneco to B+ from BB-.

According to the agency, all three companies, along with a number of other companies in the sector, are expected to remain on rating watch negative until the availability of longer-term federal assistance for General Motors is clarified.

In the event of a bankruptcy of General Motors, further rating actions are likely, the agency said, noting that the rating actions incorporate a rapidly deteriorating production forecast for key European markets, as well as further global production cutbacks.

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