S&P cuts view on Titan International to negative

AP News
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Posted: Dec 22, 2009 5:00 PM

Standard & Poor's on Tuesday lowered its outlook on Titan International Inc., citing the tire maker's higher debt levels.

The outlook was lowered to "negative" from "stable." All ratings on the Quincy, Ill.-based company, including its junk-grade "B+" corporate credit rating, were affirmed.

In a note to investors, analyst Robyn Shapiro noted Titan's weakened operating performance and higher debt leverage, after the closing of its $172.5 million convertible senior notes offering. The company has said it intends to use proceeds for general corporate purposes, including potential acquisitions and repayment of debts.

Titan's stock fell 44 cents, or 5.4 percent, to close at $7.68.