Fitch Lifts Negative Outlook On 3 Auto Suppliers

NEW YORK (AP) — Fitch Ratings on Friday removed three auto suppliers from negative credit watches, easing the risk of imminent downgrades.

Fitch assigned "stable" outlooks for American Axle & Manufacturing Holdings Inc., Tenneco Inc. and TRW Automotive Holdings Corp. and affirmed their current issuer default ratings.

That rating is "CCC" for American Axle and "B-minus" for Tenneco and TRW.

However, Fitch kept ArvinMeritor Inc. on a negative rating watch with an issuer default rating of "CCC." It said the company faces risks in selling off its light-vehicle business and might need covenant relief before Sept. 30 because of cash burn.

Fitch had put all four companies on negative watch in December because of fear about possible bankruptcies at Chrysler LLC and General Motors Corp.

The ratings agency kept the suppliers under negative watch after the auto makers filed for bankruptcy protection because of concerns about lower vehicle-production volumes. GM and Chrysler have emerged from Chapter 11 protection and "the auto supply base has not faced serious disruptions despite some bankruptcies," Fitch said.