Fitch downgrades Dana

Fitch Ratings said it downgraded the ratings of the senior unsecured notes issued by Dana Inc. and its Dana Financing Luxembourg Sarl subsidiary to BB/RR4 from BB+/RR4. The agency also lowered Dana’s issuer default rating to BB from BB+ and affirmed its secured revolver at BBB-.

“The downgrade of Dana's ratings follows operating challenges over the past several years. Many of the issues were largely outside the company's control, and have resulted in leverage and margins falling outside of Fitch's sensitivities for the previous rating.

“Although Fitch expects the company's performance to strengthen over the coming years on better operating conditions and restructuring benefits, Fitch does not expect the company to consistently produce margins and leverage in line with the previous ratings sensitivities for at least several years,” the agency said in a press release.

For 2024, Fitch said it estimates Dana produce slightly negative post-dividend free cash flow in 2024.

The outlook is stable.

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