Bulletin: Federal-Mogul Holdings Corp. Ratings Unaffected By Merger Proposal From Icahn Enterprises

NEW YORK (Standard&Poor's) March 2, 2016--Standard&Poor's Ratings Services said today that its ratings and outlook on Federal-Mogul Holdings Corp. (B-/Negative/--) are unaffected by the company's announcement that it has received a merger proposal from its majority shareholder, Icahn Enterprises L.P. (IEP). IEP is offering to purchase the remaining shares of Federal-Mogul that it does not own for $7 a share (in cash). Our current ratings on Federal-Mogul focus on the company's ability to improve its operations, which would allow it to increase its free operating cash flow while maintaining an adequate level of liquidity. Federal-Mogul's Board of Directors will appoint a special committee of independent directors to evaluate IEP's proposal. Earlier this year, we revised our

...We have determined, based solely on the developments described herein, that no rating actions are currently warranted. Only a rating committee may determine a rating action and, as these developments were not viewed as material to the ratings, neither they nor this report were reviewed by a rating committee....

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