S&P drops Hayes Lemmerz

Standard & Poor's said it lowered its corporate credit rating on Hayes Lemmerz International Inc. to B- from B.

At the same time, the agency said it also lowered its issue-level ratings on the company's debt.

All ratings on the company remain on Creditwatch with negative implications, where they were placed on Nov. 14, the agency said.

"The downgrades reflect its view that declining auto sales and production in North America and Europe during 2009 could lead to higher leverage and thin liquidity as Hayes struggles to reduce its negative free operating cash flow over the next several quarters," said S&P credit analyst Gregg Lemos Stein.

Hayes's extensive restructuring efforts during the past several years have improved margins and customer and geographic diversity; however, the agency said it expects very weak automotive demand globally - including in Europe, which represents nearly 60% of Hayes's sales - to overwhelm these positive trends in 2009.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.