Moody's rates ArvinMeritor SGL-2

Moody's Investors Service said it assigned a speculative grade liquidity rating of SGL-2 to ArvinMeritor Inc.

Moody's said the SGL-2 rating reflects the company's good liquidity structure, which includes an expectation of positive free cash flow generation and ongoing access to a substantially unused multi-year bank credit facility that was extended in July for a four year commitment period.

Although Moody's said it expects the company to have a stronger operating performance in fiscal 2004 than 2003, led by a recovery in its commercial vehicle systems business and benefits from its restructuring actions, the ratings service said many leverage metrics remain at less than investment grade levels.

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