S&P: Standard Motor on watch

Standard & Poor's said it placed its B+ corporate credit and B- subordinated debt ratings on Standard Motor Products Inc. on CreditWatch negative.

S&P said the CreditWatch placement reflects Standard Motor's continued weak credit protection measures relative to expectations as of Dec. 31 with lease-adjusted total debt to EBITDA exceeding 6x and EBITDA interest coverage below 2x.

The company's financial profile was pressured by debt undertaken to acquire Dana Corp.'s Engine Management division for $130 million in July 2003 and by subsequent costs required to integrate and restructure this unprofitable business unit, according to S&P.

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