Moody's ups American Axle ratings

Moody's Investors Service said it upgraded the ratings for American Axle & Manufacturing Inc., including the company's $300 million of 9.75% guaranteed senior subordinated notes due March 2009 to Ba1 from Ba2; the $618.8 million of remaining guaranteed senior secured bank credit facilities to Baa3 from Ba1, and the senior unsecured issuer rating to Ba1 from Ba2.

The rating outlook is stable.

Moody's said the company's corporate-level senior implied rating and its senior secured debt ratings have notably realized investment-grade status. Moody's rating evaluation incorporated public acknowledgments by American Axle's CEO Dick Dauch and other members of the senior management team that the company is committed to maintaining its investment-grade credit metrics as it pursues growth and strives to return value to stockholders.

The agency said the rating upgrades reflect American Axle's steady improvement over the last 12 months ended Sept. 30 with regard to its level of positive operating cash flow generation after capital expenditures, which approximated $240 million for the period.

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