Research Update: International Automotive Components Group S.A. Outlook Revised To Negative On Weaker Cash Flow Generation Prospects Sep 11

  • ID: 1927699
  • September 2011
  • Region: Global
  • Standard & Poors
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Global auto component supplier International Automotive Components Group S.A.'s (IAC's) exposure to rising resin prices coupled with elevated capital spending has pressured cash flow generation so far in 2011. We are affirming all of our ratings on IAC, including our 'B+' corporate credit rating and 'B' issue ratings (with a '5' recovery rating) on its $300 million senior secured notes and revising the outlook to negative from stable. The negative outlook revision reflects our assessment that IAC's free cash flow generation could be strained well into 2012 to support required growth in working capital levels to keep pace with modest expansion, potential increases in commodity costs and higher capital expenditure levels. We now believe there is an increased likelihood that...

Companies mentioned in this report are: International Automotive Components Group S.A.
Action: Outlook: Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

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International Automotive Components Group S.A.

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