S&P trims Autoliv view to negative

S&P said it revised its outlook on Autoliv Inc. and its subsidiary Autoliv ASP Inc. to negative from stable. At the same time, S&P affirmed its A- long-term and A-2 short-term issuer credit ratings on both entities.

S&P also affirmed its K-1 Nordic national scale rating and A- issue rating on Autoliv's senior unsecured debt, issued by core subsidiaries Autoliv AB and Autoliv ASP Inc.

Autoliv has announced its intention to transfer of up to $1.2 billion to capitalize Veoneer, a new entity created from a spinoff of its electronics business, to capitalize the new entity. To fund the capital injection, Autoliv intends to raise the majority of the amount through debt financing and the remainder from its cash on hand.

“We consider the spinoff to be shareholder friendly, since we view it and the transfer as equal to a dividend payment,” S&P said in a news release.

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