Moody's lowers Dura

Moody's Investors Service said it lowered the ratings of Dura Operating Corp. and its direct parent, Dura Automotive Systems, Inc. and assigned a Caa3 probability-of-default rating to Dura Automotive.

Dura Operating's senior secured second-lien term loan and term loan add-on were lowered to Caa2 (LGD 3, 35%) from Caa1, the senior unsecured notes were lowered to Ca (LGD 4, 61%) from Caa3; and the senior subordinated notes were lowered to C (LGD 6, 92%) from Ca. Dura Automotive Systems Capital Trust's preferred securities also were lowered to C (LGD 6, 98%) from Ca and Dura Automotive's corporate family rating was lowered to Ca from Caa1.

Moody's said the lowered ratings reflect the company's ongoing operating pressures in the automotive supplier sector, which have recently been exacerbated by the announcement of additional production declines in the second half of 2006.

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