S&P cuts Acument Global

Standard & Poor's said it lowered Acument Global Technologies Inc.'s (formerly Textron Fastening Systems) corporate credit rating to B from B+ and placed ratings on CreditWatch with negative implications.

"The downgrade and CreditWatch listing reflect our view that declining auto sales and production in North America and Europe during 2009 is likely to lead to higher leverage for Acument and that liquidity could become pressured amid declining headroom under its financial covenants in the coming quarters," S&P analyst Sarah Wyeth said in a statement.

Ratings reflect the company's aggressively leveraged capital structure and vulnerable business profile, the agency said.

This is marginally offset by a good market position with customers in non-auto and high-growth region in the large and fragmented mechanical fasteners industry, the agency noted.

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