S&P lowers Greenbrier

Standard & Poor's said it lowered Greenbrier Cos. Inc.'s corporate credit rating to B+ from BB- and removed ratings from CreditWatch, where they were placed with negative implications on Nov. 6.

The outlook is negative.

"The rating actions reflect the deterioration in key measures of the company's credit quality and follows weakening operating results due to lower railcar deliveries," S&P analyst Robyn Shapiro said in a statement.

Ratings reflect the company's weak business risk profile stemming from the cyclicality of the freight car manufacturing industry, dramatic decline in demand for new railcars and limited customer diversity, the agency said.

The company also has a highly leveraged financial risk profile, marked by increased debt balances as a result of recent acquisitions, the agency added.

Greenbrier has a solid position in the intermodal railcar market and the benefit of the relatively more stable refurbishment and leasing businesses, S&P said.

The company's total adjusted debt-to-EBITDA ratio as of Aug. 31 was about 5.5x.

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