Fitch: Dana unaffected by acquisition

Fitch Ratings said it does not expect the ratings of Dana Inc. and Dana Financing Luxembourg Sarl to be affected by the company's plan to acquire the Oerlikon Drive Systems business from Oerlikon Group.

Dana’s long-term issuer default rating is BB+, and the senior unsecured notes ratings of Dana and Dana Financing are BB+/RR4.

The outlook is stable.

“Despite the incremental debt needed to fund the transaction, management reiterated that it remains focused on leverage reduction with a goal of achieving investment-grade metrics,” the agency said in a news release.

Fitch said the transaction is also generally consistent with its expectation that Dana will make acquisitions of this sort from time to time.

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