S&P cuts J.B. Poindexter outlook to stable

Standard & Poor's said it affirmed J.B. Poindexter & Co. Inc.'s B corporate credit rating and B- senior unsecured rating. The outlook was revised to stable from positive.

S&P said the outlook revision reflects J.B. Poindexter's weaker-than-expected operating performance and cash flow generation, which could make it more difficult for the company to reduce debt and strengthen credit-protection measures in the near term. The company's 2005 results were hurt by a decline in fleet business at its Morgan Olson unit, by soft sales and higher delivery costs in the Truck Accessories Group and by higher raw material and utility costs.

The ratings on J.B. Poindexter continue to reflect its high leverage, its cyclical and medium-size end markets, its historically variable cash flows, its raw material price exposure and the significant

customer concentration at its Morgan unit (a manufacturer of Class 5-7 truck bodies separate from the Morgan Olson unit, which makes step vans), the agency said.

Furthermore, operating lease-adjusted total debt to EBITDA was roughly 5x as of Sept. 30.

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