fbpx
Connect with us

Moody’s Cuts ArvinMeritor Rating

ArvinMeritor Inc. said its debt rating was lowered to non-investment grade by Moody’s Investors Service and that the move will boost the company’s borrowing costs. Moody’s cut its rating on the Troy-based company’s long-term debt to Ba1, one level below investment grade, from Baa3, ArvinMeritor, said in a filing with the Securities and Exchange Commission. The company makes truck axles and automotive exhaust systems. Moody’s said the downgrade reflects ArvinMeritor’s “relatively poor performance” in 2003 and the first quarter of 2004, a result of lower vehicle production and slow demand for heavy trucks.

Advertisement

From Detroit Free Press

Advertisement

TROY, MI — ArvinMeritor Inc. said its debt rating was lowered to non-investment grade by Moody’s Investors Service and that the move will boost the company’s borrowing costs.

Moody’s cut its rating on the Troy-based company’s long-term debt to Ba1, one level below investment grade, from Baa3, ArvinMeritor, said in a filing with the Securities and Exchange Commission. The company makes truck axles and automotive exhaust systems.

Moody’s said the downgrade reflects ArvinMeritor’s “relatively poor performance” in 2003 and the first quarter of 2004, a result of lower vehicle production and slow demand for heavy trucks.

“Although Moody’s expects a stronger financial performance from ARM in 2004, driven primarily by an improving heavy truck industry, the improved credit metrics will remain inconsistent with an investment grade credit rating,” the agency said.

Advertisement

ArvinMeritor last month posted a 41 percent drop in quarterly net income to $19 million, in part because of costs linked to a failed takeover bid for Dana Corp.

_______________________________________

Click here to view the rest of today’s headlines.

Advertisement

POPULAR POSTS

Association

MEMA Announces Plan to Position Organization for the Future

Association

AWDA Announces New Officers and Governors

Distribution

Counter Professional Of The Year Honored In Las Vegas

Automotive Aftermarket Manufacturing

Chevron to Acquire Beyond6 CNG Fueling Network

Connect
aftermarketNews