U.S. automotive supplier Federal-Mogul Holdings Corp. has continued to adjust its global distribution footprint, integrate its recent acquisitions, invest in information technology (IT) systems, and rebuild some of its brands. Nevertheless, we believe that the company's key credit metrics in 2016 will be worse than we had expected. For instance, as of the end of third-quarter 2015 the company had negative free operating cash flow (FOCF) of about $350 million. Therefore, we are revising our outlook on Federal-Mogul Holdings Crop. to negative from stable. The negative outlook reflects our view that there is at least a one-third probability that we could lower our corporate credit rating on Federal-Mogul over the next 12 months if the company continues to burn cash
