S&P cuts American Axle view to negative

Standard & Poor's said it revised its outlook to negative from stable on the corporate credit ratings for American Axle & Manufacturing Holdings Inc. and operating unit American Axle & Manufacturing Inc.

At the same time, it affirmed the BBB corporate credit rating and all other ratings on both entities.

According to S&P, the outlook revision on American Axle follows release of the company's weak financial results for first-quarter 2005 and downward full-year earnings guidance.

At year-end 2004, the company's credit measures were much stronger than necessary for the ratings, giving American Axle the flexibility to make significant investments to expand product, customer and geographic diversity to lessen dependence on its main customer, General Motors Corp., from whom it generates 79% of its sales. Much of this flexibility will be eliminated in 2005, given the current industry outlook.

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