Small font size A Larger text size A Largest text size A

Fitch downgrades auto parts maker First Brands on debt concerns

BY Reuters | CORPORATE | 09/25/25 05:22 PM EDT

Sept 25 (Reuters) - Rating agency Fitch said on Thursday it was downgrading automotive parts maker First Brands Group's long-term issuer default rating to 'CCC' from 'B', amid concerns the company might have to pursue debt restructuring or file for bankruptcy.

"The downgrade reflects Fitch's view that the company's options for addressing its debt have become increasingly limited to off-market options and it faces a higher risk of a distressed debt exchange or bankruptcy," the rating agency said.

A distressed debt exchange is a type of out-of-court debt restructuring where a company facing financial distress exchanges existing debt for new debt with different terms to avoid bankruptcy.

(Reporting by Aishwarya Jain in Bengaluru and Saeed Azhar in New York; Editing by Krishna Chandra Eluri)

More Fixed Income News

EMERGING MARKETS-Indonesian rupiah slips; Asian assets mark time ahead of Fed BY Reuters |ECONOMIC 03:04 AM EST
PRECIOUS-Gold subdued ahead of Fed verdict, silver powers to record high BY Reuters |ECONOMIC 02:42 AM EST
IMF urges China to speed up structural reform, raises growth forecasts BY Reuters |ECONOMIC 02:32 AM EST
IMF urges China to speed up structural reform, raises growth forecasts BY Reuters |ECONOMIC 02:30 AM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article