Fitch cuts Navistar ratings on cash-flow worries
ASSOCIATED PRESS September 17, 2012 11:32AM
Updated: October 19, 2012 6:11AM
Fitch Ratings on Monday cut its issuer default ratings for Navistar International Corp. and its financing subsidiary another notch deeper into non-investment grade status, citing the increasing risk surrounding the company’s cash flow.
Fitch lowered the ratings to “CCC” from “B-.” The outlook is negative. Shares of Navistar fell 96 cents, or 3.7 percent, closing at $25.07 Monday. Navistar shares are up 27 percent from its 52-week low of $19.79 set Sept. 5. But they are down 48 percent since hitting a high for the year of $48.18 in early February.
Fitch said the moves reflect heightened financial risk, mainly involving liquidity and negative manufacturing cash flow, and expectations that those concerns will continue. Navistar, based in Lisle, has struggled amid uncertainty about whether its Class 8 engine would get EPA approval. The company expects new emission-reducing technology to be available early next year.