Fitch: Auto suppliers still on watch

Fitch Ratings said it said that the U.S. auto suppliers listed below remain on rating watch negative following the bankruptcy filings of General Motors Corp. and Chrysler LLC.

The suppliers were initially placed on watch negative in December 2008 because of concerns about potential bankruptcy filings by the automakers and the possible negative impact that could be felt by the supplier base, the agency noted.

Fitch said it is keeping the issuer default ratings on watch negative for most of the auto suppliers due to several key concerns, including the auto suppliers' ability to adjust to lower vehicle sales volumes on a longer term basis, uncertainty regarding post-bankruptcy volumes at GM and Chrysler, the need for many auto suppliers to seek covenant relief from lenders, and reduced access to credit at a time when much of the supplier base is in need of liquidity.

Liquidity is Fitch's key concern.

Affected ratings include:

• American Axle & Manufacturing Holdings, Inc.'s issuer default rating CCC;

• American Axle & Manufacturing, Inc.'s issuer default rating CCC; senior secured bank facility B-; and senior unsecured notes C;

• ArvinMeritor's issuer default rating CCC; secured B; and senior unsecured CC;

• Johnson Controls' long-term issuer default rating BBB; senior unsecured credit facilities BBB; senior unsecured long-term debt BBB; short-term issuer default rating F2; and commercial paper F2;

York International Corp.'s long-term issuer default rating BBB; and senior unsecured long-term debt BBB;

• Tenneco's issuer default rating B-; senior secured bank facility B+; senior secured second-lien notes CC; senior unsecured notes to CC; and subordinated notes CC;

• TRW Automotive Holdings Corp.'s issuer default rating B; and

• TRW Automotive, Inc.'s issuer default rating B; secured bank facility BB-; and senior unsecured notes CCC.

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