Fitch: Chrysler unaffected

Fitch Ratings said Chrysler LLC's B+ issuer default rating is unaffected by the ratification of a labor agreement with the United Auto Workers.

Also unaffected is the BB+/RR1 rating on the $7.5 billion first-lien senior secured term loan and $2 billion senior secured second-lien term loan.

Ratings reflect the intense competitive conditions in the North American auto market, an uncertain U.S. economic outlook entering 2008, declining market share, an unbalanced product mix, stresses in the supply base, high leverage in a high fixed-cost industry and an ongoing restructuring program, the agency said.

The ratings also reflect the cost benefits and improved competitive position from the new union contract, Chrysler's relative success across a number of product segments, the benefits of its relationship with Daimler AG and international growth opportunities, Fitch said.

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