S&P cuts Motor Coach ratings

Standard & Poor's said it lowered its corporate credit and senior secured debt ratings on Schaumburg, Ill.-based Motor Coach Industries International Inc. to CCC from B- and lowered its subordinated debt rating on Motor Coach to CC from CCC.

The ratings remain on CreditWatch with negative implications, where they were first placed on Sept. 3.

S&P said the ratings downgrade and continued CreditWatch listing reflect concern over the increased possibility that Motor Coach, North America's leading manufacturer of intercity coaches, might default on its debt obligations due to weak cash-flow generation caused by continued, depressed, private sector demand.

S&P has not yet received Motor Coach's third- or fourth-quarter 2003 financial statements; any failure on the company's part to deal successfully with loan covenant issues could result in acceleration of the bank loan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.