S&P lowers Hayes Lemmerz

Standard & Poor's said it lowered its corporate credit rating on Hayes Lemmerz International Inc. to B+ from BB-, reflecting the company's weaker-than-expected operating results and rising debt leverage amid challenging conditions in the automotive industry.

The outlook is negative.

S&P said Hayes reported weak results for the second quarter ended July 31, with EBITDA declining 31% despite a 10% increase in sales.

The sales increase resulted from higher volumes in international markets, the partial recovery, from customers, of increased steel prices and benefits from favorable foreign exchange rates, the agency added, noting profitability declined primarily because of low volumes on large, profitable vehicle platforms in North America.

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