A number of North American suppliers to the Detroit Big Three had their credit ratings placed on CreditWatch with negative implications today by Standard & Poor's Ratings Services because of their ties to ailing automakers.
S&P singled out ArvinMeritor Inc., BorgWarner Inc., Cooper-Standard Automotive Inc., Federal-Mogul Corp., Goodyear Tire & Rubber Co., Hayes Lemmerz International Inc., Johnson Controls Inc., Lear Corp., MetoKote Corp., Shiloh Industries Inc., Stoneridge Inc., Tenneco Inc. and Visteon Corp. for their significant exposure to General Motors Corp. (CCC+), Ford Motor Co. (B-) and Chrysler LLC (CCC+). The rating service said almost all the potential scenarios envisioned are negative for the Big Three as they burn through cash.
Other auto suppliers, including American Axle & Manufacturing Inc. and TRW Automotive Inc. were already on CreditWatch, in part because of their dependence on the three automakers.
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