S&P lowers Standard Motor

Standard & Poor's said it lowered the corporate credit rating on Standard Motor Products Inc. to CC from CCC+.

The outlook is negative.

The actions follow the company's announcement on March 20 that it is offering to exchange 15% convertible subordinated debentures due 2011 for outstanding 6¾% convertible subordinated debentures due July 2009, up to a maximum of $20 million principal amount.

"Under our criteria, we view the exchange as being made by a company under substantial financial pressure and offering investors less than the original promise - in this case, when the new debentures' maturities extend beyond the original maturities," S&P analyst Lawrence Orlowski said in a statement.

S&P said the downgrade is based on the financial pressure that Standard Motor is under to reduce its debt by retiring it later than originally contracted.

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