S&P lowers Oxford Auto ratings

Standard & Poor's said it lowered its corporate credit rating on Oxford Automotive Inc. to B- from B and its rating on the company's second-lien senior secured debt to CCC from CCC+.

Oxford remains on CreditWatch with negative implications.

The downgrade follows S&P's assessment that Oxford's vulnerability to adverse business, financial, or economic developments has increased, given the company's announcement that its EBITDA will likely fall short of S&P's prior expectations for both March fiscal years 2004 and 2005.

In addition, Oxford faces liquidity challenges in the next 12 to 18 months, while it prepares for the launch of a significant Mercedes program at its new McCalla, Ala., facility. Furthermore, financial results for fiscal 2006 remain highly dependent on the success of the new Mercedes program launch that is scheduled for December 2004.

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