MUMBAI (Thomson Financial) - Fitch Ratings downgraded its ratings on ArvinMeritor (ARM), citing continuing and expanded negative cash flow, and the associated balance sheet erosion.
The issuer default rating (IDR) was cut to 'BB-' from 'BB'; senior secured revolver to 'BB' from 'BB+' and senior unsecured notes to 'B+' from 'BB-'.
The outlook is negative.
Fitch expects negative free cash flow to persist through at least the first half of ARM's fiscal 2008, and the timing and extent of a reversion to positive free cash flow remains uncertain.
Improvement in operating performance will depend on the pace and strength of a rebound in the truck market, as well as the success of restructuring efforts in the low-margin light vehicle systems segment, the agency said. TFN.newsdesk@thomson.com jro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The issuer default rating (IDR) was cut to 'BB-' from 'BB'; senior secured revolver to 'BB' from 'BB+' and senior unsecured notes to 'B+' from 'BB-'.
The outlook is negative.
Fitch expects negative free cash flow to persist through at least the first half of ARM's fiscal 2008, and the timing and extent of a reversion to positive free cash flow remains uncertain.
Improvement in operating performance will depend on the pace and strength of a rebound in the truck market, as well as the success of restructuring efforts in the low-margin light vehicle systems segment, the agency said. TFN.newsdesk@thomson.com jro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
