U.S. automotive supplier Federal-Mogul Holdings Corp.'s credit metrics will likely remain weaker than we had previously expected as the company continues to restructure its operations and integrate recent acquisitions. Despite these actions, the company's debt-to-EBITDA exceeded 6.0x and its free operating cash flow (FOCF) was negative as of the end of 2014. Therefore, we are lowering our corporate credit rating on Federal-Mogul Holdings Corp. to 'B-' from 'B'. The outlook is stable. At the same time, we are lowering our issue-level rating on the company's senior secured debt to 'B-' from 'B'. The stable outlook reflects our view that the company's credit measures will start to improve over the next 12 months as it realizes greater operational efficiencies and expands
