Moody's lowers Adient view to negative

Moody's Investors Service said it revised Adient Global Holdings Ltd.'s outlook to negative from stable.

Moody's also said it affirmed Adient's long-term ratings, including corporate family and probability of default ratings at Ba2, along with its Ba2-PD, senior secured credit facilities at Baa3 and senior unsecured notes at Ba3.

The company's speculative grade liquidity rating also was downgraded to SGL-3 from SGL-2.

The negative outlook considers news that the company revised its profit guidance for 2018 downward and that it expects free cash flow for the fiscal year to be negative, Moody's said.

Despite showing improvement in the second quarter results, operational inefficiencies in the seating structures and mechanisms business continue to challenge the company's operating performance, the agency said.

The negative outlook reflects the likelihood that pressures will carry into fiscal 2019, Moody's said.

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