Fitch rates Aptiv notes BBB

Fitch Ratings said it assigned a rating of BBB to the announced senior unsecured notes issuance of Aptiv plc.

The new $650 million notes will be issued in two series, a 10-year series and a 30-year series, Fitch said.

The proceeds will be used to repay Aptiv's $650 million in 3.15% senior unsecured notes due 2020, the agency noted.

The company has a long-term issuer default rating of BBB and stable outlook.

The ratings reflect the company's relatively strong credit profile as it continues to leverage its market position in advanced automotive technologies and its low cost base to drive margins and free cash flow that are relatively high for the auto supply industry, Fitch said.

Aptiv's focus on advanced technologies and electrical architecture puts it at the forefront of important growth trends in the global auto industry, the agency said.

Rating concerns include the cyclical nature of the global auto industry, intense industry competition, volatile raw material costs and new competitive entrants into the automotive technology sector, Fitch said.

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