Moody’s might cut L&W

Moody's Investors Service said it placed Autokiniton US Holdings, Inc.'s (L&W) B2 senior secured and corporate family rating under review for downgrade.

The agency said the action follows the announcement that Autokiniton Global Group, L&W's parent, has entered into a definitive agreement to acquire Tower International, Inc.

The B1 senior secured and corporate family rating and positive outlook on Tower's debt are unaffected at this time.

Moody’s said the review will consider L&W's proposed capital structure, the integration challenge of tripling the company's scale through this transaction, and the prospects for earnings and cash flow growth and ability to control costs given softening global automotive industry conditions.

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