Fitch Raises BorgWarner Outlook To Positive, Cites Market Position |
| Wall Street Journal - May 27, 2011 |
Fitch Ratings revised BorgWarner Inc.'s (BWA) ratings outlook to positive from stable, citing the auto supplier's strong engine and drivetrain market position as well as improving trends in the global auto industry.
Fitch also affirmed BorgWarner's BBB issuer default rating, which is investment grade and considered below-average credit quality.
The ratings agency expects continued credit-profile improvement over the next 12 to 18 months as market conditions improve and the company reduces its debt with the maturity of its convertible notes in 2012.
BorgWarner reported in April its first-quarter earnings rose 63% thanks in part to foreign currency exchange rates and contributions from recent acquisitions, while revenue jumped 35%.
The company has seen robust earnings growth in recent quarters as continued recovery in auto sales increased demand for its powertrain products. It has also benefited from demand in Europe shifting toward vehicle types, such as diesels, that use more of its products.
Read Full Article from Wall Street Journal
- Posted: 2011-05-27 12:58:49
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