Fitch cuts Sifco NSR to BB(bra)

Fitch Ratings said it affirmed Sifco SA's local- and foreign-currency issuer default rating at B- and $75 million senior unsecured notes due 2016 at B-/RR4.

In conjunction with these actions, the agency downgraded Sifco's national scale rating to BB(bra) from BB+(bra).

The outlook is stable.

Fitch said Sifco's credit ratings reflect its weak liquidity, high financial leverage and business risk in the cyclical automotive business. Sifco is one of the main suppliers of front axles for trucks and buses in Latin America, with a market share of 98%.

The ratings also incorporate the company's volatile operational margins, limited product and customer diversification, and the important commercial relationship with Dana Corp., the agency said.

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