Moody's drops Elyria

Moody's Investors Service said it downgraded Elyria Foundry Co. LLC's ratings, including the corporate family rating to Caa1 from B2, and kept the ratings under review for further possible downgrade.

These actions reflect Moody's expectation that Elyria's operating performance will deteriorate substantially during 2009 as a result of weakening demand for castings, and could pressure the company's ability to generate sufficient cash flow relative to its capital structure, according to the agency.

Moody's noted that Elyria reported a 30% volume decline during the first quarter, compared to the prior year period, and a thinning order backlog.

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