S&P lowers Visteon

Standard & Poor's said it lowered its corporate credit rating on Visteon Corp. to CCC from B- and removed all the ratings from Creditwatch, where they had been placed on Nov. 13, with negative implications.

The outlook is negative.

At the same time, the agency said it also lowered its issue-level ratings on the company's debt.

"The downgrade reflects its view that weak auto sales and production in North America and Europe during 2009 will cut Visteon's cash balances significantly and hinder the company's ability to reduce its cash use more than we previously expected," said S&P credit analyst Robert Schulz.

"Although liquidity appears adequate for at least the early months of 2009, the agency said it could lower the rating further within the next year if the effect of reduced automaker production in North America and Europe or restructuring delays cause Visteon's global cash balances to drop below $700 million (compared to $1.1 billion at Sept. 30), or if Visteon seeks to restructure its debt," he continued.

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