Moody's lowers Oxford Auto

Moody's Investors Service said it lowered the ratings for Oxford Automotive Inc. in connection with new information provided within the company's recent preliminary third quarter earnings news release and conference call, and from discussions with management.

Moody's downgraded Oxford Automotive's $280 million of 12% guaranteed senior secured second-lien notes due 2010 to Caa1 from B3, the senior implied rating to Caa1 from B3, and the senior unsecured issuer rating to Caa2 from Caa1.

The outlook was changed to negative from stable.

Oxford Automotive's preliminary results for the third fiscal quarter ended Dec. 31 and its updated outlook for the full fiscal year ending March 31, 2004, were much lower than previously indicated due to a series of unanticipated developments. The company also disclosed significant deterioration of its near- to intermediate-term liquidity versus earlier management estimates.

Moody's said Oxford Automotive also said it has identified certain accounting misstatements pertaining to intercompany transactions, the timing of accruals, and the timing of inventory adjustments. The company will have to delay SEC filings by 90 to 120 days for both its third quarter ended Dec. 31 financial statements and its exchange offer registration statement for the 12% guaranteed senior secured second-lien notes due 2010.

© 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.