Cooper Tire & Rubber Co.'s debt rating was cut to junk yesterday by Standard & Poor's, which cited "pressure" on the company's earnings.
S&P lowered the Findlay tire maker's senior unsecured rating one level to BB+ from BBB-, and said in a statement the rating reflects "poor near-term earnings and cash-flow prospects." The downgrade to high-risk, high-yield junk affects about $720 million in debt.
Cooper Tire has sustained higher costs and a drop in production after Hurricane Rita last month disrupted supplies of materials such as carbon black, which is used to reinforce tires.
Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.