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Oxford Automotive's $40 M Senior Subordinated Notes Rated 'B-'

2 December 1998

Oxford Automotive's $40 Million Senior Subordinated Notes Rated 'B-' by S&P

    NEW YORK, Dec. 1 -- Standard & Poor's today assigned its
single-'B'-minus rating to Oxford Automotive Inc.'s $40 million 10 1/8% senior
subordinated notes due 2007.
    Standard & Poor's also affirmed its single- 'B'-plus corporate credit
rating on the company and single-'B'-minus rating on the company's
$125 million subordinated notes due 2007.
    The outlook remains positive.
    Ratings reflect Oxford's expanding niche position in the cyclical and
competitive automotive industry, offset by a leveraged capital structure and
an aggressive acquisition strategy.
    Oxford is a tier-one supplier of large, complex engineered metal
components to the original equipment automotive industry.  Specific products
include door apertures and assemblies, A-pillars, class A surface products,
control arms, and leaf springs.  The company has grown significantly over the
past several years as a result of acquisitions.  Since late 1995 the company
has acquired several operations which have significantly broadened its
product, technology and customer breadth and substantially increased its
revenue base.  For the fiscal year ended March 31, 1998 the company generated
sales of $410 million.  This compares with $137 million in the previous fiscal
year.  The company's most recent acquisition occurred in April 1998 with the
acquisition of the suspension division of Eaton Corp.
    Oxford has indicated that it will continue to pursue acquisitions in order
to expand its systems capabilities and geographic and customer diversity.
It is currently negotiating the acquisition of a company in Europe which would
give it access to the European market and bolster its global supply
capabilities.  Oxford's strategy is to pursue different types of acquisitions
or, including those it thinks offer significant restructuring opportunities,
and the company has been successful in improving the operating results of its
acquisitions to date.  However, this aggressive acquisition strategy adds an
element of risk, particularly given the company's high leverage and the
cyclical and competitive nature of the company's end markets.  Debt to
earnings before interest, taxes, depreciation, and amortization (EBITDA) was
about 3.4 times (x) at the end of fiscal year 1998 (prior to recent and
potential acquisitions).  Included in the capital structure is about
$40 million of redeemable preferred stock.

    OUTLOOK: POSITIVE
    If Oxford continues to be successful in integrating acquisitions and
improving operating performance and cash flow protection measures over the
near-to-intermediate term, ratings could be raised, Standard & Poor's said.
 -- CreditWire