Moody's lowers Autocam to SGL-4

Moody's Investors Service said it lowered Autocam Corp.'s speculative grade liquidity rating to SGL-4, representing weak liquidity, from SGL-3.

The action follows poor operating results in the company's second quarter, Moody's ongoing expectations for negative free cash flow over the coming 12 months, and disclosure by the company that it may be unable to maintain compliance with its financial covenants as early as the quarter ending Sept. 30.

Other contributing factors include Autocam's limited balance sheet resources and reliance upon its bank revolving credit, whose effective availability over quarterly reporting dates has been reduced, Moody's said.

Autocam's current long-term ratings (corporate family, Caa1) and negative outlook are not affected by this action.

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