Moody's cuts UCI

Moody's Investors Service said it lowered the corporate family and probability of default ratings of UCI Holdco, Inc. to Caa1 from B3.

The agency said that UCI Holdco is the ultimate parent of United Components, Inc. and that in a related action, the ratings of Holdco's unguaranteed senior unsecured notes were lowered to Caa3 from Caa2; the ratings of UCI's senior secured credit facilities were lowered to B1 from Ba3; and the ratings of UCI's senior subordinated notes were lower to Caa2 from Caa1.

The ratings remain under review for possible downgrade.

Moody's added that the lowering of Holdco's corporate family and probability of default ratings to Caa1 reflects its belief that demand for automotive aftermarket parts will continue to be lackluster as consumers reduce miles driven and adopt more conservative spending patterns as a result of weakened general economic conditions.

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