S&P: Hayes Lemmerz unchanged

Standard & Poor's said its ratings and outlook on Hayes Lemmerz International Inc. (B-/negative) are not immediately affected by the company's announcement that it is seeking consent from secured lenders that would permit it to exchange its senior unsecured notes for equity.

The agency noted that Hayes is currently prohibited from conducting a debt-for-equity exchange under the terms of its senior secured credit agreement.

While Hayes' actions increase the possibility that the company would pursue a debt-for-equity exchange at some point in the future, S&P said it does not believe that such a transaction is likely in the very near term, in part because of the recent rise in the market price of Hayes' senior unsecured notes and its decent liquidity.

S&P added it does not believe that today's announcement in itself foreshadows a decline in Hayes' credit profile from current levels.

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