Standard & Poor's Corp. lowered the credit rating of Venture Holdings Co. L.L.C. after the company's German subsidiary, Peguform GmbH, filed for insolvency last week. Venture's rating dropped to CCC from B-plus.
Venture Holdings and Peguform manufacture interior trim and exterior plastic parts, such as bumpers, for the automotive industry.
Peguform accounted for 70 percent of Venture Holding's sales last year. The insolvency filing, the German equivalent of Chapter 11 protection, will "severely impair Venture's ability to meet its debt-service obligations" with the drying up of that cash flow, Standard & Poor's, a New York City-based ratings agency, said in a statement.
Venture Holdings, a suburban Detroit company, has total debt of $877 million. The company had a $14 million interest payment on its public bonds due Monday. Nobody at Venture Holdings was immediately available Tuesday morning to confirm whether that payment had been made.
The company's rating remains on CreditWatch with negative implications, Standard & Poor's said.