DETROIT - Credit rating agency Moody's Investors Service Inc. has lowered the corporate credit rating of Plastech Engineered Products Inc. from B2 to B1, Crain's Detroit Business reported.
The agency also said the Dearborn, Mich., company no longer is pursuing an acquisition of supplier Collins & Aikman Corp., of Troy, Mich., which is undergoing Chapter 11 reorganization.
"The downgrade reflects the weakening of Plastech's credit metrics resulting from price concessions to OEMs and higher raw material costs," Moody's said in the Jan. 6 report.
"Consequently, Plastech's operating and financial performance will remain under pressure despite the company's decision that it no longer intends to pursue an acquisition of Collins & Aikman Corp."
Officials at Plastech and Collins & Aikman could not be reached for comment.