S&P cuts Greenbrier

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

The outlook is negative.

"The downgrade reflects its concerns regarding the railcar manufacturer's upcoming operating performance due to deteriorating conditions in the new railcar market," said S&P credit analyst Robyn Shapiro.

The agency said that it expects new railcar production to decline significantly in 2009 compared to 2008 and, as a result, Greenbrier's credit metrics are likely to worsen to levels outside its expectations for the B+ rating.

Given the company's thin margin of financial covenant compliance and approaching covenant step-downs, weakening operating performance could pressure covenants in the near term, S&P noted.

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