S&P: Hayes Lemmerz on watch

Standard & Poor's said it placed its B+ corporate credit rating on Hayes Lemmerz International Inc. on CreditWatch with negative implications because of the poor near-term earnings and cash-flow prospects for the wheel manufacturer amid challenging conditions in the automotive industry.

S&P said Hayes has reported weak results during the past year, noting that for the first nine months of its fiscal 2005 ended Jan. 31, the company reported adjusted EBITDA of $164 million, a 17% decline from the prior year's level and cash flow generation was negative.

Industry conditions for automotive suppliers have been tough because of higher raw material costs, customer market-share shifts, product mix changes and pricing pressure, the agency added.

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