Fitch affirms Navistar

Fitch Ratings said it affirmed and removed from Rating Watch negative Navistar International Corp. and Navistar Financial Corp.'s BB- issuer default and senior unsecured bank facility ratings, to reflect progress in filing audited financial statements.

The outlook is negative.

The negative outlook reflects continued weakness in the North American truck market, the potential for weak cash flow in it its current fiscal year, low margins, litigation concerns surrounding Navistar International's relationship with Ford and the potential for limited access to capital, according to Fitch.

Ratings also reflect concerns including material weaknesses in financial reporting control, ongoing regulatory investigations and commodity cost increases, the agency added.

Ratings are supported by U.S. and Canada market share leadership in Class 6-8 trucks and school buses, competitive engine portfolio, strong North American distribution network, current and future potential military business, and likely strategic acquisition of GM's medium duty business, Fitch said.

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