Operates in the cyclical automotive industry, and the more stable auto-parts aftermarket; Good scale with global operations and diversified customer base; Exposed to raw material price volatility, as well as pricing pressures from Original Equipment Manufacturers (OEMs); and A number of aftermarket brands, which face increased competition and pricing pressure from private label parts at retailers. Aggressive use of leverage; Inconsistent and relatively low free operating cash flow (FOCF); and Volatility in working capital management. S&P Global Ratings' stable outlook on Southfield, Mich.-based Federal Mogul LLC reflects the view that the company has improved its margins and cash flow, reducing debt to EBITDA below 6x. We could lower the rating in the next 12 months if the company's debt leverage
