NEW YORK (Standard&Poor's CreditWire) Oct. 5, 2000--Standard&Poor's lowered its ratings on Owens Corning to 'D' (see list below). The rating actions follow the company's announcement that it has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Today's filing reflects Owens Corning's assessment of costs to resolve current and future asbestos claims, together with recent new filings from plaintiff lawyers not participating in the company's National Settlement Program. Moreover, operating margins and income from operations have deteriorated significantly, penalized by lower demand for building material products as a consequence of increased interest rates, combined with higher energy and raw material costs. Ongoing asbestos litigation led to an unexpected major addition ($1 billion pretax)
