US: American Axle downgraded to junk bond status
American Axle & Manufacturing stock has been downgraded to junk bond status by Fitch Ratings, according to Reuters.
Fitch cut the auto supplier's issuer default rating by two steps to "BB" from "BBB-minus," which is the lowest investment-grade rating. The outlook is negative because it is heavily dependent on business with GM.
GM accounted for 78% of American Axle's revenues in 2005, reported Reuters.