S&P puts Cooper Tire & Rubber on watch

Standard & Poor's said it placed its BB corporate credit rating on Cooper Tire & Rubber Co. on CreditWatch with negative implications.

The action resulted from the poor earnings prospects facing the company in light of difficult tire industry fundamentals, including soft consumer demand and very high raw material costs, the agency said.

High oil prices also drive up the costs of raw materials used in the production of tires, the agency noted, adding that continued high demand for energy, combined with geopolitical unrest in the Middle East, have resulted in new highs for the price of oil in recent weeks and could result in sustained or even higher oil prices through the remainder of 2006.

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