S&P ups Hayes loan

Standard & Poor's said that it affirmed the ratings, including the B corporate credit rating, on Hayes Lemmerz International Inc. and revised the outlook to positive.

S&P also raised the issue-level ratings on the senior secured term loan to B+ from B based on the recovery rating of 2, indicating a substantial (70%-90%) expectation of recovery. S&P revised the recovery rating to 2 from 3.

The outlook revision reflects the expectation that Hayes could improve cash flow generation as vehicle production recovers in 2011 and 2012, the agency added.

Hayes' free cash flow generation in recent quarters has been somewhat above expectations, given the ongoing recovery in light- and commercial-vehicle production in North America and Europe, and continuing growth in demand in South America and Asia, the agency noted.

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