NEW YORK -- Standard & Poor's on Friday downgraded Dura Automotive Systems Inc.'s debt ratings deeper into junk territory, citing factors including the auto parts maker's weak operating results and high borrowings.
The move comes after S&P on Wednesday took early steps to cut General Motors' debt ratings to junk, by lowering the carmaker's ratings outlook to negative from stable.
GM and Ford Motor Co. are both suffering from high inventories and high health care expenses. Difficulties in the auto industry could limit Dura's access to funds, S&P said. GM and Ford combined account for about 40 percent of Dura's sales.
S&P cut Dura's corporate credit rating one notch to B, the fifth-highest junk rating, from B-plus. The outlook is negative. The company has total debt of about $1.2 billion.