S&P lowers MetoKote

Standard & Poor's said it has lowered its corporate credit rating on MetoKote Corp. to B from B+.

The rating remains on Creditwatch, where it was placed with negative implications on Nov. 13, the agency added.

At the same time, the agency said it also lowered its issue-level rating on the company's debt.

"The downgrade reflects its view that declining light-vehicle sales and production in North America and Europe during 2009 will lower the company's profitability and cash flow generation and strain liquidity," said S&P credit analyst Lawrence Orlowski.

The agency said that it believes will increase substantially to at least 4.5x by the end of fiscal 2009 from about 3.2x as of fiscal 2008, assuming sales decline by more than 18% in 2009 and margins deteriorate by roughly 300 basis points.

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