Fitch rates Navistar 'BB-' |
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Wed, 10 Jan 2007 19:56
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NEW YORK (AFX) - Fitch Ratings said Wednesday it has assigned a 'BB-' rating to Navistar International Corp.'s proposed $1.3 billion senior unsecured credit facility.The ratings service also withdrew its 'BB-' rating on the truck and bus maker's senior unsecured notes, its 'B' rating on its senior subordinated debt, and the senior unsecured debt rating at Navistar Financial Corp., all of which have been substantially retired.Fitch expects to withdraw the 'BB-' rating on Navistar's existing credit facility upon the closing of the new $1.3 billion facility.All of the ratings for Navistar and Navistar Financial, which cover about $2.5 billion in debt, remain on rating watch negative, Fitch said.The resolution of the watch status will depend on the filing of audited financial statements and the outcome of an ongoing Securities and Exchange Commission investigation into the company.Navistar said in December that it would not meet the New York Stock Exchange's Feb. 1 deadline for the restatement of its 2005 financial results.The company, which is in danger of being delisted from the NYSE, is restating financial results back to 2002, due to accounting problems it uncovered in April.Fitch said that additional filing delays, financial restatements or worse-than-expected operating results, could result in the downgrade of Navistar's rating.Navistar shares rose to a new 52-week high of $36.27 before slipping back to $36.19, up 50 cents in afternoon trading on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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China demonstrating growing influence over global steel industry - Fitch 