Moody's rates Visteon notes Caa1

Moody's Investors Service said it affirmed Visteon Corp.'s corporate family and probability-of-default ratings of B3, senior secured term loan rating of Ba3 (LGD2, 19%), senior unsecured notes rating of Caa2 (LGD6, 94%) and speculative grade liquidity rating of SGL-3.

The agency assigned a prospective rating of Caa1 (LGD4, 66%) to Visteon's proposed senior unsecured notes.

The outlook remains negative.

Proceeds will be combined with $150 million of cash to tender for $344 million of Visteon's existing senior unsecured notes due 2010. The tender would result in a slight de-leveraging of the company's balance sheet and ease debt maturity requirements in 2010, the agency noted.

The B3 corporate family rating recognizes Visteon's weak credit metrics and the risk in executing a restructuring program that is essential to the company's long-term viability, Moody's said.

Visteon continues to improve its customer mix and book of business, the agency noted.

For the 12 months ending March 31, Visteon's debt-to-EBITDA ratio was about 5.6 times.

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