Moody's cuts GITI Tire

Moody's Investors Service said it downgraded GITI Tire Ltd.'s corporate family rating to B3 from B2 and senior unsecured bond rating to Caa1 from B3.

This concludes a review that began in September.

The outlook is stable.

The downgrade was driven by a concern that GITI's high financial leverage, which is weak for its previous rating, is unlikely to improve by any material extent amid the challenging global automotive market, Moody's said.

While the company's operating performance in recent months is on an improving trend, it remains uncertain whether it can be sustained as most of the margin expansion was driven by lower raw material prices that have since risen again, the agency said.

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