Fitch upgrades Meritor

Fitch Ratings said it upgraded Meritor, Inc.’s issuer default rating to B+ from B.

Fitch also said it upgraded the company’s senior secured credit facility rating to BB+ with a recovery rating of RR1 from BB with a recovery rating of RR1 and its senior unsecured notes rating to B+ with recovery rating of RR4 from B with recovery rating of RR4.

The outlook is stable.

The upgrades reflect the fundamental improvement in the company’s credit profile resulting from its work to strengthen its balance sheet, improve the flexibility of its cost structure and grow its customer base, Fitch said.

The ratings also consider Meritor’s continued strong market position as a supplier of axles and brakes in the highly cyclical commercial and off-road vehicle sectors, the agency said.

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