Moody's cuts Autocam

Moody's Investors Service said it has downgraded the ratings of Autocam Corp., including the corporate family rating to Caa1 from B3, senior secured bank credit facilities to Caa1 from B3 and senior subordinated debt to Ca from Caa2, along with Autocam France SarL's senior secured bank credit facilities to Caa1 from B3.

The speculative grade liquidity rating was affirmed at SGL-4.

The action flows from the weak year to-date cash generation, reduced earnings, corresponding reduction in debt coverage ratios and elevated leverage, as well as the company's weak liquidity profile, Moody's said.

Autocam's profitability has been adversely affected by lower OEM production volumes in both North America and Western Europe, ongoing unit price reductions, restructuring expenditures and reduced shipments of components used in power steering and electric motor applications as a result of being desourced by certain European customers, Moody's said.

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