American Axle

--Issuer Default Rating (IDR) is affirmed at 'CCC', removed from Rating Watch Negative and assigned a Stable Outlook;

ArvinMeritor

--IDR 'CCC' remains on Rating Watch Negative;

Tenneco

--IDR is affirmed at 'B-', removed from Rating Watch Negative and assigned a Stable Outlook;

TRW Automotive

--IDR is affirmed at 'B-', removed from Rating Watch Negative and assigned a Stable Outlook.

A full list of the ratings is detailed at the end of this release.

Today's rating action concludes the Rating Watch that was initiated on Dec. 11, 2008 due to concerns about possible bankruptcies by General Motors (GM) and Chrysler LLC (Chrysler); following the bankruptcies by the two automakers, the Rating Watch remained in effect due to concerns about post-bankruptcy vehicle volumes at GM and Chrysler. ArvinMeritor remains on Rating Watch Negative for separate matters as discussed below. Both GM and Chrysler emerged from Chapter 11 and the extended production shutdowns are complete. Furthermore, the auto supply base has not faced serious disruptions despite some bankruptcies such as Hayes-Lemmerz International, Lear Corporation, Metaldyne Corp. and Visteon Corp. While the Rating Watch has been removed, Fitch views the global automotive environment as challenging in the near term and on a longer term basis, the suppliers should benefit from the significant restructuring actions taken before and during the global automotive slump.

Fitch continues to believe that North American vehicle sales volumes will improve in the second half of 2009 versus the first half of the year. Drivers for the modest improvements against the first half are the government's 'Cash for Clunkers' program which is nearly completed; aggressive vehicle pricing; consumers' access to vehicle financing which was difficult to obtain in the early part of 2009; and a reduction in dealer inventories. With higher production volumes, auto suppliers will be using cash for working capital needs in the second half of the year, and Fitch expects most suppliers should have adequate liquidity while production ramps up. Fitch believes this to be the case given that many suppliers have amended financial covenants to ensure access to revolving credit facilities. American Axle is currently trying to obtain covenant relief as well as other modifications to its credit agreement to ensure its access to liquidity as discussed below.

Looking ahead to 2010, Fitch continues to see gains in vehicle sales in North America which should enable the suppliers to gain operating efficiencies; in Europe vehicle sales are likely to decline. Fitch expects to see free cash flow to be negative for many suppliers; it may be another year in which many suppliers restrict capital expenditures. Balance sheets for the auto suppliers are likely to remain damaged for some time.

--American Axle: Fitch has removed the 'CCC' IDR from Rating Watch Negative and assigned a Stable Outlook to American Axle. The actions are based on Fitch's expectation that the company will succeed in finalizing two key related items: 1) an agreement with GM; and 2) an amendment with lenders. Both will need to occur to ensure that the company maintains access to liquidity. If both are completed, the company will receive a one-time payment of $110 million from GM. Furthermore, GM will offer American Axle a $100 million delayed-draw second lien term loan which extends through 2013 and American Axle can also receive expedited payments through the end of 2013. In return, American Axle will offer warrants to GM which will be up to 19.9% of its common shares (7.4% initially and up to an additional 12.4% if American Axle draws on the second lien term loan); it will also agree to an access and security agreement.