Fitch raised Tenneco's issuer default rating to "BB+" from "BB" and its senior unsecured ratings to "BB" from "BB-." It also backed Tenneco's secured term loan A and secured revolving credit facility ratings at "BBB-."
The ratings apply to an $850 million secured revolving credit facility, a $241 million secured term loan A and $725 million in senior unsecured notes. The ratings outlook is "Stable."
Fitch said the Lake Forest, Ill.-based company's credit profile has improved as global auto sales have grown and demand for the company's technologies remains strong. It noted that Tenneco remains a top global supplier of emission control and vehicle suspension components and has a significant presence in both the new vehicle and replacement markets.
In addition to its traditional light vehicle business, the company has also gotten a boost from increasingly strict emission regulations for commercial vehicles, Fitch said.
Tenneco shares fell 18 cents to $37.50 in late trading.