S&P puts LDM Technologies on positive watch

Standard & Poor's said it placed its B- corporate credit and senior secured bank loan ratings and CCC subordinated debt rating on Auburn Hills, Mich.-based LDM Technologies Inc. on CreditWatch with positive implications.

S&P said the actions reflect Plastech Engineered Products' (unrated) announcement that it has agreed to acquire LDM Technologies.

Although the terms of the transaction have not been disclosed, the ratings action reflects S&P's expectation that the combined entity could have a stronger financial profile should the merger be completed as planned. The transaction is expected to close in February, subject to regulatory approval.

LDM supplies plastic instrument panel and interior components, exterior trim components, and under-the-hood components to North American automotive original equipment manufacturers. Demand for plastic under-the-hood components has been growing over the past few years as vehicle manufacturers have increased their use of these products to reduce vehicle weight and improve design flexibility.

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