From CBS.MarketWatch.com, MEMA Industry News
SAN FRANCISCO — Fitch Ratings on Tuesday raised its rating on Dana Corp. and said that lower debt and a healthier cash position could lead to another upgrade.
The ratings change affects $2.5 billion of the Toledo, Ohio-based auto parts maker’s debt, according to Fitch.
Shares of Dana Corp. fell 13 cents to finish the trading day at $16.74.
Fitch said in a statement that it expects Dana to cut its net debt by almost a third through a combination of debt reduction and the maintenance of a strong cash balance.
The agency lifted its rating on Dana’s senior unsecured debt rating to “BB-plus” from “BB,” and said that another upgrade could be on the way, pending Dana’s final resolution on what to do with the proceeds from its $1-billion sale of the Automotive Aftermarket Group to the Cypress Group.
At the time of the sale back in August, the Toledo, Ohio-based company said it planned to use the money to pay down debt, contribute to its pension plan and make investments in its core business.
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