S&P drops Hayes Lemmerz to CCC+

Standard & Poor's said it lowered the corporate credit rating on Hayes Lemmerz International Inc. to CCC+ from B- and. Ratings were removed from CreditWatch with negative implications, where they were placed on Nov. 13.

The downgrades reflect Hayes's tight liquidity, which will remain under pressure from sharp declines in automotive production in Europe and North America, according to the agency.

Ratings reflect the company's constrained liquidity, high leverage and recent negative cash flows, as well as the multiple business risks inherent in the automotive supply industry, the agency said.

Partly offsetting these risks are the company's solid market position and good geographic and customer diversity as the world's largest wheel manufacturer, the agency noted.

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