S&P: Clayton view negative

Standard & Poor's said it revised the outlook on Clayton Holdings Inc. to negative from stable following continued turmoil in the subprime mortgage loan and securitization markets and the company's impairment charge to its goodwill and other intangible assets and long-lived assets.

Ratings on the company, including the B+ corporate credit rating, were affirmed.

S&P said the rating reflects Clayton's narrow business profile, significant exposure to macroeconomic factors that affect mortgage origination and securitization, and noncontractual revenue streams.

These factors are partly offset by long-standing relationships with top mortgage-backed securities originators, a good competitive position and conservative leverage levels for the rating, according to the agency.

Clayton has a debt-to-EBITDA ratio of about 1.9 times for the quarter ended September.

S&P: Advance Auto view negative

Standard & Poor's said it revised the outlook on Advance Auto Parts Inc. to negative from stable. The agency affirmed the BB+ corporate credit rating.

The company signed a $200 million term loan due 2011 and plans to use proceeds to buy back shares, according to the agency.

"The outlook reflects more aggressive financial policy during a more challenging auto part aftermarket environment and pro forma credit metrics that will be weak for current ratings," S&P credit analyst Stella Kapur said in a written statement.

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