S&P lowers Dana

Standard & Poor's said it lowered its corporate credit rating on Dana Corp. and its wholly owned subsidiary, Dana Credit Corp., to D from CCC-.

The ratings were removed from CreditWatch with developing implications, where they were placed on Feb. 24.

The agency also lowered Dana's senior unsecured debt to D from CC.

S&P noted that Dana has been experiencing increased financial stress since mid-2005 due to declining production levels from its largest domestic customers, especially Ford Motor Co., sharp increases in commodity prices that it has not been able to pass along to customers and its own operational inefficiencies at both light and commercial vehicle operations that the company disclosed in the fall of 2005 along with its restructuring plan to improve operating performance.

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