Fitch affirms Visteon

Fitch Ratings said it assigned a CC/RR6 rating to Visteon Corp.'s new 12¼% senior unsecured notes, which are being issued as part of the company's recent debt exchange offer, and affirmed its issuer default rating at CCC, senior secured bank facilities at B/RR1 and unsecured notes at CC/RR6.

The outlook is negative.

The agency said Visteon's ratings are based on expectations of continued negative cash flows in 2008 that Fitch estimates are likely to persist in 2009. Fitch expects the combination of accelerated production cuts at Ford North America and high commodity costs are likely to offset new business wins and cost reduction efforts, leading to accelerated cash drains in 2008 and further impairment to Visteon's balance sheet and liquidity position.

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