Standard & Poor's downgrades Cooper
Standard & Poor's has lowered its corporate credit and senior unsecured rating on Cooper Tire & Rubber Co. from "BBB-" to "BB+."
The decision was made due to "poor near-term earnings and cash flow prospects for the tire manufacturer, which will cause credit protection measures to be weaker than previously expected," say Standard & Poor's officials.
"Cooper has reported depressed operating results during the past year and is expected to continue to experience earnings pressure for at least the next few quarters.
Standard & Poor's believes Cooper "will experience continued market share pressure because of its capacity constraints and because order fill rates are lower than historical levels."