Fitch rates Sifco, notes B-,

Fitch Ratings said it assigned Sifco SA foreign- and local-currency issuer default ratings of B- and long-term national rating of BB(bra), along with a B- with a recovery rating of RR4 to its proposed $100 million senior unsecured note issuance due 2016.

The outlook is stable.

The RR4 recovery rating on the company's unsecured debt issuance reflects average recovery in the event of default.

The ratings reflect the company's high financial leverage and business risk in the cyclical automotive business, Fitch said.

Sifco is one of the leading suppliers of front axles for trucks and busses in Latin America with a market share of 98%, the agency said, and is well positioned to benefit from the increasing demand in Brazil's automotive parts sector over the next few years.

The ratings also incorporate the company's volatile operational margins, limited product and customer diversification and the strong credit linkage with its parent company, Grupo Brazil, S&P said.

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