S&P lowers Cooper-Standard

Standard & Poor's said it has lowered its corporate credit rating on Cooper-Standard Automotive Inc. to CC from B.

At the same time, the agency said it lowered the ratings on the company's various debt issues.

All ratings remain on Creditwatch with negative implications, were they were placed on Nov. 13, the agency noted, adding that these actions follow the company's announcement that it has received bank permission to repurchase term loan debt at a discount from par using an auction.

S&P said it expects Cooper-Standard to begin an auction for up to $150 million of term loan debt at a discount.

"Our downgrade does not reflect a perceived increase in Cooper-Standard's bankruptcy risk," said S&P credit analyst Robert Schulz. The tender offer, if successful, will reduce debt and cash interest expense, and will decrease the risk of a default. "Rather, its downgrade is based on the financial pressure that Cooper-Standard is under to reduce its debt burden by retiring debt for less than originally contracted," he continued.

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