S&P Lowers Titan International Outlook
On December 22 Standard & Poor’s lowered its outlook on Titan International, citing the tyre maker’s higher debt levels. The outlook was lowered to “negative” from “stable.” All of the company’s ratings, including its junk-grade “B+” corporate credit rating, were affirmed.
According to Reuters, analyst Robyn Shapiro released a note to investors highlighting Titan’s weakened operating performance and higher debt leverage, after the closing of its US$172.5 million convertible senior notes offering. The company said it intends to use proceeds for general corporate purposes, including potential acquisitions and debt repayment.