S&P cuts Remy

Standard & Poor's said it lowered its corporate credit rating on Remy International Inc. to CCC from CCC+.

The downgrade stems from Remy's inability to improve very weak earnings and cash flow, leaving the company with shrinking prospects for meeting its December 2007 maturity of its $145 million senior notes, according to the agency.

The agency noted that Remy recently lowered its earnings guidance for 2006 to a range that is not sufficient to cover the company's cash interest expense.

S&P added that the ratings reflect Remy's very aggressive leverage, weak EBITDA, near-term debt maturities and limited liquidity.

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