S&P lowers Citation

Standard & Poor's said it lowered its ratings on Citation Corp., including the long-term corporate credit rating, to B from B+.

The downgrade reflects the company's weaker financial results and thin liquidity caused by lower automotive and heavy-duty truck production volumes, the agency said.

The outlook is negative.

Issue-level ratings were lowered in concert with the corporate credit rating downgrade, the agency said, noting that it believes the sharp downturn in U.S. automotive demand will continue for several more quarters and heavy-truck markets may only recover gradually, making it difficult for Citation to return its credit ratios to levels consistent with the previous rating.

Separately, S&P said it revised the recovery rating on Citation's $30 million term loan to 4.

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