S&P: ArvinMeritor, Dana ratings remain on watch

Standard & Poor's said that its BB+ corporate credit and senior unsecured debt ratings on ArvinMeritor Inc. and its BB corporate credit and senior unsecured debt ratings on Dana Corp. remain on CreditWatch with negative implications, following the termination of an unsolicited takeover offer of Dana by ArvinMeritor.

S&P said it will review ArvinMeritor's and Dana's business, operating and debt reduction plans, and the near-term industry outlook before determining the impact on the ratings for both companies. If both companies continue to take actions to improve their financial profiles in the wake of the termination of the takeover bid, S&P said it is likely to affirm its ratings on both of them.

ArvinMeritor said that it ended its $2.67 billion unsolicited takeover offer for rival auto parts supplier Dana after Dana's board unanimously rejected ArvinMeritor's recently sweetened offer.

Dana has maintained that its shareholders will be better served by retaining their shares and benefiting from the company's restructuring program. ArvinMeritor has stated that it will now pursue an organic growth plan.

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