Fitch drops Hayes Lemmerz to CCC

Fitch Ratings said it downgraded the Hayes Lemmerz International Inc.'s issuer default rating to CCC from B- and HLI Operating Co., Inc.'s issuer default rating to CCC from B- and senior secured revolving credit facility to B-/RR3 from B+/RR2.

The agency also lowered Hayes Lemmerz Finance - Luxembourg SA's issuer default rating to CCC from B-, senior secured revolving credit facility to B-/RR3 from B+/RR2, senior secured euro synthetic letter of credit facility to B-/RR3 from B+/RR2, senior secured euro term loan to B-/RR3 from B+/RR2 and senior unsecured euro notes to C/RR6 from CCC/RR6.

Ratings remain on Rating Watch negative, where they were placed on Dec. 11.

The downgrades reflect expectations for a deep and extended decline in global auto volumes and the terms of the amended credit facility, which only provides Hayes covenant relief for a year, according to Fitch.

Ratings are supported by the company's leading position in the global wheel market, geographic and customer diversity, and significant progress in restructuring operations, the agency said. HAYZ has no significant debt maturities until 2014.

As of Oct. 31, debt-to-EBITDA ratio was 3.7x, from 3.8x at the end of its fiscal year ending Jan. 30.

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