DETROIT -- Standard & Poors Ratings Services said today it placed supplier Plastech Engineered Products Inc. on CreditWatch with negative implications. Currently, Sandard and Poors rates Plastech as a B+. CreditWatch is an official review process that can result in changes to a companys debt rating. Standard & Poors defines B+ as four levels below investment grade.
Standard & Poors said it plans to meet with Plastechs management to assess the companys prospective credit profile.
The CreditWatch listing reflects our intention to review the Plastech corporate credit rating, based on our expectations that credit protection measures will remain under pressure in the near term and that liquidity could decrease because of weak production volumes, adverse product mix, and challenges in reducing costs, Standard & Poor's credit analyst Nancy Messer said in a statement.
Standard & Poors said Plastechs total balance-sheet debt was $488 million on Sept. 30.
Based in suburban Detroit, Plastech makes a variety of plastic auto parts and components for vehicle interiors. Plastech ranks No. 51 on the Automotive News list of the top 150 suppliers in North America with estimated original-equipment automotive parts sales of $1.07 billion in 2006.