S&P drops Citation

Standard & Poor's said it lowered its corporate credit rating on Citation Corp. to CCC+ from B-.

At the same time, the ratings were taken off CreditWatch with negative implications, where they were placed on Aug. 21, the agency said.

S&P noted that the downgrade reflects the company's weaker-than-expected cash flow for the first three quarters of its fiscal year, thin liquidity and increased pressure on future results because of lower production schedules by the U.S.-based automakers.

The outlook is negative.

Citation's credit protection measures have weakened since it emerged from bankruptcy in May 2005, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.