S&P downs Dura Automotive

Standard & Poor's said it lowered its corporate credit rating on Dura Automotive Systems Inc. to B- from B.

The agency said this stems from the company's poor near-term earnings and cash flow prospects and the execution risks Dura faces with its ambitious restructuring plan.

Dura's operating results have been under pressure because of the very challenging environment facing automotive suppliers, who have to contend with cyclical demand, tough competition, volatile raw-material costs and a concentrated customer base that has substantial purchasing power, S&P added.

Furthermore, the company's earnings weakened in 2005, in part because of reduced vehicle production from Ford Motor Co., which represents about 20% of Dura's sales, and General Motors Corp., also representing 20%, the agency said.

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