13 Domestic Automotive Suppliers Now Placed On Credit Watch List By S&P

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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Hyundai - 11/13/2008 6:23:48 PM

+1 Boost

That's pretty...... bad.

Doesn't BorgWarner also supply transmissions to BMW?

veyron1001 - 11/13/2008 7:44:21 PM

-1 Boost

I dont think the suppliers will go under but there will be major change within their company.

Hyundai - 11/13/2008 8:06:17 PM

0 Boost

Some suppliers might be squeezed too tight. You never know what conditions will push a company over the edge.

aussiemonster - 11/13/2008 8:06:02 PM

+2 Boost

This is why there needs to be government support for the industry. It's not just the 'big 3' hurting, the suppliers are being run into the ground as well. There needs to be support for the industry so that they can all restructure to become competitive again.

Hyundai - 11/13/2008 8:11:38 PM

0 Boost

I don't think that the executives are "with" reality, though. They are making millions of dollars and I am sure they don't feel the consequences of their improper decisions. I am sure they feel something, but not like that of which their employees would feel if they were laid-off due to downsizing. The execs will still be there. The thing is, is that they are detached to the situation, so how would giving them money with little to no oversight fix the issue?

The only kind of investigation into their affairs would be revealed by journalism, so do you think that that is enough of an oversight to grant giving them tax-payers' money to feed their fat bellies? Why will this not happen all over again and sink the economy into an even DEEPER hole?

This is a BAD deal. I don't have ANY faith in the system.

I would love the economy to recover because otherwise my business would feel the consequences, but I am prepared for the worst.