S&P lowers Federal-Mogul outlook to negative

Standard & Poor's said it revised its outlook on Federal-Mogul Corp. to negative from stable.

At the same time, the agency said it affirmed its BB- corporate credit rating on the company.

The outlook revision reflects deteriorating global economic conditions that are likely to pressure EBITDA in upcoming quarters, leading to higher leverage - adjusted debt to EBITDA moving toward 5x, for example - that could result in a downgrade in the next year, the agency said, adding that the likelihood of a downgrade depends on the depth and duration of the economic downturn, combined with the company's ability to manage its cost structure to fit the new market.

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