Global auto component supplier International Automotive Components Group S.A.'s (IAC's) exposure to rising resin prices coupled with elevated capital spending has pressured cash flow generation so far in 2011. We are affirming all of our ratings on IAC, including our 'B+' corporate credit rating and 'B' issue ratings (with a '5' recovery rating) on its $300 million senior secured notes and revising the outlook to negative from stable. The negative outlook revision reflects our assessment that IAC's free cash flow generation could be strained well into 2012 to support required growth in working capital levels to keep pace with modest expansion, potential increases in commodity costs and higher capital expenditure levels. We now believe there is an increased likelihood that
