S&P lowers Cooper Tire

Standard & Poor's said it lowered the corporate credit rating on Cooper Tire & Rubber Co. to B from B+.

The outlook is negative.

"The downgrade reflects our view of the adverse effect the global economic downturn is having on replacement tire demand in North America and Europe and on the company's financial performance," S&P analyst Lawrence Orlowski said in a statement.

"We believe Cooper faces significant problems that will impede its financial performance for the near term. Although the company has been introducing premium products, reducing costs and expanding its presence in Asia and Mexico, the very weak fourth quarter of 2008 sharply worsened the company's credit measures," he continued.

During 2009, even without a repeat of the fourth quarter, the agency said it believes adjusted debt-to-EBITDA ratio could be more than 7x.

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