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S&P lowers United Components
Standard & Poor's said it lowered the corporate credit rating on United Components Inc. to B- from B.
The outlook is negative.
The downgrade reflects UCI's tight liquidity and very aggressive leverage.
"Given our expectations for the duration and depth of the U.S. recession and our view of the negative effect it will have on aftermarket revenues, we no longer expect UCI to achieve lease-adjusted total debt to EBITDA of 5x or less in the year ahead," S&P analyst Nancy Messer said in a statement.
Ratings reflect the company's highly leveraged financial risk profile and weak business risk profile as an automotive aftermarket supplier, the agency said.
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