S&P downgrades Visteon debt

Standard & Poor's said it lowered its issue-level rating on Visteon Corp.'s $1.5 billion senior secured term loans maturing 2013 to CCC+ from B- and revised the recovery rating on this debt to 2 from 1.

The agency also lowered the issue-level rating on Visteon's unsecured notes due 2010, 2014 and 2016 to CC from CCC- and revised the recovery rating to 6 from 5.

The CCC corporate credit rating and negative outlook remain unchanged.

The rating changes reflect S&P's revised assumptions about the value of Visteon's U.S. assets and foreign operations following a simulated default, given the severe global downturn in automotive demand. The agency said valuations have declined because of weakened earnings prospects for the company's operations.

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