S&P: Delphi unaffected

Standard & Poor's said that its ratings on Delphi Corp. (B+/negative/B-3) are not presently affected by the company's disclosure that it had made misstatements of its debt and liquidity position, which resulted in the overstatement of net liquidity (as defined by Delphi) by up to $374 million from 1999 through the third quarter of 2004.

S&P's ratings incorporate the belief that the misstatements will not disrupt Delphi's $2.8 billion bank financing plans, which should be completed in the next few weeks. The successful completion of the bank financing, as currently proposed, is a critical underpinning of S&P's ratings on Delphi because the financing is expected to provide the company with sufficient liquidity to fund its sizable cash obligations during the next few years.

Delphi expects to become current in its periodic reporting obligations on or before June 30.

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