S&P cuts Meridian Automotive

Standard & Poor's said it lowered its corporate credit rating on Meridian Automotive Systems Inc. to CCC+ from B+, reflecting increased concerns about the company's operating performance, cash flow generation and liquidity amid very challenging industry conditions.

S&P also lowered Meridian's senior secured first-lien rating to CCC+ from B+ and senior secured second-lien rating to CCC- from B-.

These challenging conditions include reduced vehicle production, pricing pressure and higher raw material costs. The outlook is negative.

S&P said additional cuts may be necessary later in the year if the lackluster sales pace does not improve and inventories remain high.

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