S&P puts Visteon on watch

Standard & Poor's said it placed its B+ corporate credit rating on Visteon Corp. on CreditWatch with negative implications.

The CreditWatch placement follows Ford Motor Co.'s announcement of sharply lower North American production in the second half of 2006, with the largest cuts coming in the fourth quarter, the agency said.

Affected ratings include that company's senior secured debt at B+ and senior unsecured debt at B-.

The agency said that Ford is Visteon's largest customer, accounting for 48% of the company's sales, though only half of that is in North America.

The long-term effect on Visteon's ratings will depend on Ford's ability to stem its market share losses, which will drive 2007 production levels, S&P added.

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