Moody's cuts Tower Automotive liquidity to SGL-4

Moody's Investors Service said it lowered the SGL liquidity rating for Tower Automotive Inc. to SGL-4 from SGL-3, reflecting Moody's opinion that Tower's near-term liquidity position has deteriorated to "weak" from "adequate."

Tower's Ba3 senior implied rating, other fundamental debt ratings, and negative rating outlook remain unchanged.

Moody's said the lowering of Tower's speculative grade liquidity rating to SGL-4 reflects Moody's current expectation that Tower's liquidity (defined as "cash plus effective unused availability") will likely fall materially below $100 million during the first three quarters of 2004, due to negative free cash flow generation during the period.

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