---

Arvin $150 Million Senior Notes Rated 'BBB' by Fitch IBCA

11 March 1999

Arvin $150 Million Senior Notes Rated 'BBB' by Fitch IBCA - Fitch IBCA -

    NEW YORK, March 10 -- Arvin Industries, Inc.'s (Arvin)
$150 million 7.125% senior notes due 2009 are rated 'BBB' by Fitch IBCA.
Arvin's outstanding senior debt and capital securities are affirmed at 'BBB'
and 'BBB-', respectively.  Proceeds from the notes will be used to repay a
portion of the $275 million of short-term bank debt that Arvin incurred in
connection with its recent acquisition of the Purolator Products (Purolator)
automotive filter business from Mark IV Industries, Inc.
    The ratings reflect Arvin's strong business focus and market positions in
the highly competitive automotive components business.  Arvin continues to
diversify its customer base and geographic presence as well as enhance its
capabilities in ride control and exhaust systems.  Purolator, with sales of
approximately $345 million and excellent brand recognition, adds meaningfully
to Arvin's $2.5 billion sales base, and advances Arvin's growth strategy by
adding a 'third leg' to the company's well-positioned ride control and exhaust
product lines.
    Although this initial debt financing elevates Arvin's pro forma leverage
and suppresses interest coverage, the resulting ratios are still within ranges
consistent with Fitch IBCA's current ratings.  Arvin has consistently
generated net free cash flow, while improving creditor protection.  The
company exited 1998 with cash of $107 million, total debt of $318 million,
EBITDA interest coverage of 6.85 times (x) and total debt and capital
securities relative to EBITDA at a reasonable 1.66x.  Assuming all debt
financing for the purchase, Fitch IBCA estimates pro forma interest coverage
would remain above 5x, and debt plus capital securities relative to EBITDA
would be approximately 2.5x.
    Ongoing concerns center around the maturity of the US auto cycle,
relentless customer pressure for technical and price performance, and supplier
base consolidation.  Therefore, Arvin must continue to fund healthy product
and capital spending to keep its competitive position and to serve growing
technical and service demands from its OE customers.
    Arvin Industries Inc., headquartered in Columbus, Indiana, is a leading
global producer and supplier of automotive exhaust systems and ride control
products for both the original equipment (OE) market and the replacement
market.