Moody's upgrades ZF above junk

Moody's Investors Service said it upgraded the rating of ZF Friedrichshafen AG, assigning a long-term issuer rating of Baa3.

The agency also said it upgraded to Baa3 from Ba1 all of the senior unsecured ratings relating to the notes issued by both ZF North America Capital, Inc. and TRW Automotive Inc.

The outlook is stable.

The upgrades reflect ZF's further improved credit metrics due to a combination of debt reduction and solid operating performance, Moody's said.

The upgrades also consider a continuation of the successful company strategy and maintenance of its conservative financial policy, which is expected to remain largely unchanged despite the recent management changes, the agency said.

Moody's also said it withdrew ZF's corporate family rating of Ba1 and probability of default rating of Ba1-PD following its upgrade to Baa3, as per the agency's practice for corporations with investment-grade ratings.

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