S&P cuts Visteon

Standard & Poor's said it lowered its long-term corporate credit rating on Visteon Corp. to B from B+ and its short-term rating to B-3 from B-2.

These actions stem from the company's weaker-than-expected earnings and cash flow generation, caused by vehicle production cuts, inefficiencies at several plant locations, sharply lower aftermarket product sales, continued pressure from high raw material costs and several unusual items that will impact 2006 results, the agency noted.

The outlook is negative.

S&P added that Visteon has lowered its earnings and cash flow expectations for 2006 to reflect its business challenges.

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