Moody’s revises BorgWarner view to negative

Moody's Investors Service said it affirmed the ratings of BorgWarner, Inc., including its Baa1 senior unsecured rating, following the announcement the company entered a definitive agreement to acquire Delphi Technologies plc, and revised the outlook to negative.

The agency placed Delphi's B2 senior unsecured notes under review for upgrade. Delphi's other ratings are unaffected.

The negative outlook reflects Moody's belief BorgWarner's performance following the acquisition will be challenged over the near-term by continued weakening global automotive production, Delphi's unfavorable product mix of diesel engine-rated products, Delphi's exposure to softening commercial vehicle production (about 25% of Delphi's revenues) and the rate of consumer adoption of electrified vehicle over the coming years.

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