S&P: Metaldyne on watch

Standard & Poor's said it placed its B corporate credit rating on Metaldyne Corp. on CreditWatch with negative implications.

The agency said that the CreditWatch placement reflects its decision to review Metaldyne's ratings in light of Ford Motor Co.'s announcement of sharply lower North American production in the second half of 2006, with the largest cuts coming in the fourth quarter.

S&P noted that the announcement by Ford will likely pressure Metaldyne's earnings and cash flow, since the company is a significant supplier to Ford.

The longer-term impact on Metaldyne and other suppliers will depend on Ford's ability to stem market share losses, which will drive 2007 production levels, the agency said.

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