Moody’s Investors Service has downgraded Visteon Corporation’s rating and changed its outlook to ‘stable’ from ‘under review’for possible downgrade’.
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Moody’s has downgraded the former Ford supply unit to B3 from B2, saying that the new rating emphasises weaker metrics likely for 2006, due to a more challenging than expected automotive market in 2007.
Visteon, which supplies climate control, interior, electronic and lighting products, has reportedly experienced reductions in both market share and build-rates from Ford, which is still its largest customer.
“While Visteon continues with an improved foundation with sufficient resources and an appropriate strategy from which it can progress, the pace of that improvement will be slower than [our] earlier expectations,” Moody’s said.
Moody’s last rating action for Visteon was on 4 October, at which time the supplier’s ratings were put under review for possible downgrade.
Visteon has 170 facilities in 26 countries, with 2006 revenues anticipated to be US$10.9bn.
