Cooper Debt Downgraded to Junk

Cooper Tire & Rubber’s debt rating was downgraded to junk yesterday by Standard & Poor, which cited “pressure” on the company’s earnings, reports an American news source.

The rating reflects “poor near-term earnings and cash-flow prospects,” said S&P in a statement. The downgrade to high-risk, high-yield junk affects about $720 million in debt.

The manufacturer has come under pressure from continual higher costs and suffered a drop in production after Hurricane Rita disrupted supplies of materials such as carbon black last month.