Moody's may downgrade AxleTech

Moody's Investors Service said it placed AxleTech International Holdings Inc.'s B2 corporate family and senior secured credit facility ratings under review for possible downgrade following the company's delay in producing audited financial statement for the period ended Dec. 31. These financial statements, which would be the first report on the company post its mid-October acquisition by The Carlyle Group, were due on Monday.

The company reports that the delay relates to unanticipated complexities associated with the audit of two stub periods and delays in completing the purchase accounting flowing from the $335 million acquisition price. AxleTech has approached its bank groups for waivers that will provide for a 30-day grace period. Should such waivers not be received, the company could be declared in technical default of its borrowing agreements.

Moody's said the review will consider the company's ability to secure the waiver and produce its financial statements in a timely fashion and the extent to which the company's performance may have deviated from expectations.

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