Moody's Upgrades Credit Rating of Affinia Group Inc.
Action Reflects Progress Affinia has Achieved in Improving its Margins from Continuing Operations
ANN ARBOR, Mich., Feb. 7 -- Affinia Group Inc. announced that in a Rating Action dated January 23, 2007, Moody's Investors Service, Inc. upgraded Affinia's Corporate Family Rating to B2 and raised the outlook to stable.
Moody's also raised the ratings on the Company's secured bank debt and subordinated notes. Moody's noted Affinia's progress in improving its margins from continuing operations, benefits provided by its liquidity and debt maturity profiles, and lower volatility associated with the demand for the bulk of its product offering.
The following are the updated ratings for Affinia Group Inc. from Moody's: Ratings Category Moody's Rating Outlook Stable Corporate Family Rating B2 Issuer Rating B3 Sr Secured Bank Credit Facility Ba3 Senior Subordinate B3 Speculative Grade Liquidity SGL-2
Thomas Madden, Affinia's Chief Financial Officer, stated, "While implementing an internally funded business restructuring, we have been able to grow EBITDA and earnings and continue to pay down portions of our long-term debt. We are pleased to receive this credit rating upgrade as recognition of our people's ability to execute our restructuring plans and simultaneously improve financial performance in all key areas."
Affinia Group Inc. is a global leader in the on and off highway replacement parts and services industry. In North America the Affinia family of brands includes WIX(R) filters, Raybestos(R) brand brakes and AIMCO(R) brake products, and McQuay-Norris(R) and Spicer(R) Chassis parts. South American and European brands include Nakata(R), Urba(R) and Quinton Hazell(R). Affinia has operations in 19 countries and more than 10,000 people dedicated to keeping the world's wheels turning. For more information, visit our new corporate website at www.affiniagroup.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release includes "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that is not historical information. When used in this news release, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," or future or conditional verbs, such as "will," "should," "could" or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward- looking statements, including, without limitation, management's examination of historical operating trends and data are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there is no assurance that these expectations, beliefs and projections will be achieved. With respect to all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this report. Such risks, uncertainties and other important factors include, among others: our substantial leverage; limitations on flexibility in operating our business contained in our debt agreements; pricing pressures; the shift in demand from premium to economy products; our dependence on our largest customers; increasing costs for manufactured components, raw materials, crude oil and energy prices; our ability to achieve cost savings from our restructuring; the consolidation of distributors; risks associated with our non-U.S. operations; product liability and customer warranty and recall claims; changes to environmental and automotive safety regulations; non-performance by, or insolvency of, our suppliers or our customers; the threat of work stoppages and other labor disputes; challenges to our intellectual property portfolio; exposure to product liability and other liabilities for which Dana Corporation ("Dana") retained responsibility due to the Chapter 11 filing of Dana; and changing distribution channels. There may be other factors that may cause our actual results to differ materially from the forward-looking statements.
All forward-looking statements apply only as of the date of this news release and the company undertakes no obligation to update or revise forward- looking statements to reflect events or circumstances that arise after such date.