Fitch drops Hayes Lemmerz

Fitch Ratings said it has downgraded the issuer default ratings of Hayes Lemmerz International Inc. and its subsidiaries to C from CCC, indicating that Fitch estimates that a default is imminent or inevitable.

Fitch said it has also removed Hayes Lemmerz from rating watch negative, where it was originally placed on Dec. 11.

The downgrades reflect Fitch's expectation that deteriorating automotive and truck markets and Hayes Lemmerz's weakening financial position will lead to either a coercive debt exchange or a Chapter 11 filing due to covenant pressures within the year.

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