Fitch upgrades main debt rating at ArvinMeritor following plans to sell stock, debt

Fitch upgrades ArvinMeritor debt ratings

NEW YORK — Credit ratings agency Fitch Ratings said Tuesday it upgraded ArvinMeritor’s main debt after the auto parts supplier announced plans to raise money through the sale of debt and stock to the public.

Fitch upgraded ArvinMeritor’s issuer default rating to “B-” from “CCC.” The rating remains in non-investment grade territory.

Fitch also raised the company’s senior secured bank facility rating and its senior unsecured notes rating. The ratings cover about $1 billion in debt, Fitch said.

ArvinMeritor, which supplies parts to auto makers and is headquartered in Troy, Mich., announced plans Tuesday to sell 15 million shares of common stock as well as senior unsecured debt to the public.

Shares of ArvinMeritor rose 1 cent to close at $10.36.