ArvinMeritor Debt Lowered to "Junk" by Standard and Poors

NEW YORK, May 10, 2005; Reuters reported that Standard & Poor's today cut the debt ratings of auto supplier ArvinMeritor Inc. further into junk status, citing weak operating performance and higher steel prices.

S&P also cited internal inefficiencies and weaker orders from two main customers, General Motors Corp. and Ford Motor Co.

S&P cut the company's corporate credit rating to "BB," two steps below investment grade, from "BB-plus," among other long-term ratings.

The outlook on the ratings is negative, which implies another potential cut in the next two years.

The company had total consolidated debt of about $1.5 billion at the end of March, S&P said.