...The revision of Meritor, Inc.'s Outlook to Stable from Positive in June 2020 reflects the effects of the coronavirus pandemic on the company's near-term business prospects, as well as the effect of a proposed debt issuance on the company's intermediate-term leverage metrics. Fitch continues to expect that the company's credit profile will strengthen over the longer term, but progress will slow over the next 18 months due to lower demand in Meritor's original equipment business and higher of long-term debt. Despite the Outlook revision, Fitch Ratings expects the fundamental improvements Meritor has made to its operating performance and credit profile over the past five years will help it manage the challenges of the current downturn. Fitch expects the company's liquidity position, including proceeds from the proposed note issuance, and operational flexibility will allow it to manage through the worst of the downturn. Fitch expects improved market conditions in fiscal 2021 will allow the...
