Fitch cuts American Axle rating

Fitch Ratings on Monday cut its noninvestment-grade issuer default and outstanding debt ratings for American Axle & Manufacturing Inc. to "BB-" from "BB," citing the effects of declining light-truck production.

The outlook is negative.

Fitch said that lower production of large pickup and sport-utility vehicles at General Motors Corp. will result in the deterioration of the auto supplier's operating performance.

Although American Axle has worked to diversify its products and customers away from GM's North American operations, its sales remain very dependent on large SUV and pickup production at the automaker, Fitch said.

The company's margins also will continue to be pressured over the near term by rising raw-material costs, Fitch said.