Moody's lowers J.L. French Automotive

Moody's Investors Service said it lowered J.L. French Automotive Castings Inc.'s corporate family rating to Caa1 from B3, first-lien senior secured facility to Caa1 from B3 and second-lien term loan to Caa3 from Caa1.

The downgrade incorporates J.L. French's high leverage, deterioration in its debt coverage ratios, concerns about the adequacy of its free cash flow generation, its ability to meet ongoing obligations and the adverse affects of lower North American production volumes at its two principal customers, Ford and General Motors, the agency said.

The outlook is negative.

The company's debt to EBITDA exceeded 6.5x and EBIT to interest expense was less than 1x. Given the weak operating metrics and cash flow trends, the company's ability to continue to meet its obligations will be challenged, Moody's said.

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