Standard & Poor's Affirms Collins & Aikman Ratings, Maintains Outlook
17 January 2001
Standard & Poor's Affirms Collins & Aikman Ratings, Maintains Outlook
TROY, Mich.--Jan. 17, 2001--Collins & Aikman today announced that Standard & Poor's Corporation (S&P) has affirmed the Company's corporate credit rating and maintained its outlook as stable. In making the announcement Standard & Poor's stated, "New management has successfully implemented a reorganization plan designed to improve the company's competitiveness." In addition, S&P noted that "stronger operating performance and improved working capital management has led to improved cash flow generation and reduced debt levels." Standard & Poor's action was taken following the Company's January 12th announcement that Heartland Industrial Partners had agreed to purchase 25 million newly issued shares of common stock from Collins & Aikman and 27 million shares from the Company's primary equity holders, Blackstone Capital Partners, L.P. and Wasserstein Perella Partners L.P.Commenting on the report, Thomas E. Evans, Chairman and CEO of Collins & Aikman stated, "We're extremely pleased that Standard & Poor's has maintained its outlook on the Company while also affirming our credit ratings. We believe that S&P's announcement, in tandem with other positive feedback we've received from our customers, suppliers, employees and the overall financial community, is indicative of how very beneficial this recent transaction is for our Company."
Collins & Aikman, with annual sales approaching $2 billion, is the global leader in automotive floor and acoustic systems and is a leading supplier of automotive fabric, interior trim and convertible top systems. The Company's operations span the globe through 63 facilities, 13 countries and over 15,000 employees who are committed to achieving total excellence. Collins & Aikman's high-quality products combine industry-leading design and styling capabilities, superior manufacturing capabilities and the industry's most effective NVH "quiet" technologies. Information about Collins & Aikman is available on the Internet at www.collinsaikman.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which Collins & Aikman operates, fluctuations in the production of vehicles for which the Company is a supplier, changes in the popularity of particular car models or particular interior trim packages, the loss of programs on particular car models, labor disputes involving the Company or its significant customers, changes in consumer preferences, dependence on significant automotive customers, the level of competition in the automotive supply industry, pricing pressure from automotive customers, the substantial leverage of the Company and its subsidiaries, limitations imposed by the Company's debt facilities, charges made in connection with the integration of operations acquired by the Company, the implementation of the reorganization plan, risks associated with conducting business in foreign countries and other risks detailed from time-to-time in the Company's Securities and Exchange Commission filings including without limitation, in Items 1 and 7 of the Company's Annual Report on Form 10-K for the year-ended December 25, 1999, and Item 1 in the Company's Quarterly Report on Form 10-Q for the period ended July 1, 2000.