Fitch affirms Hayes Lemmerz

Fitch Ratings said it has affirmed the issuer default ratings and outstanding debt ratings of Hayes Lemmerz International Inc. and subsidiaries as follows: issuer default rating at B.

Fitch said it has also revised Hayes Lemmerz outlook to negative from stable.

According to the agency, the outlook revision reflects declining automobile production trends in Europe and increasing concern about the company's ability to meet and maintain its tightening leverage covenant.

Additional concerns include the impact that commodity cost increases could have on working capital and margins, an expectation of negative free cash flow in the current fiscal year, including restructuring costs, margin deterioration in the most recently reported quarter, and exposure to weak North American and European commercial truck production, the agency added.

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