...- Ongoing weakness in global light-vehicle production, wage inflation, and commodity headwinds will prevent Tier 1 auto supplier Cooper-Standard Holdings Inc. from sustaining debt to EBITDA well below 5x and free operating cash flow (FOCF) to debt approaching 5%. - As a result, we are lowering the issuer credit rating to 'B' from 'B+'. The outlook is negative. - At the same time, we are lowering the rating on its senior secured term loan to 'B+' from '##'. The recovery rating on this debt is now '2' (rounded estimate: 75%). We are lowering the issue-level rating on its unsecured notes to '###+' from 'B-' with a '6' recovery rating (rounded estimate: 5%). - The negative outlook reflects at least a one-in-three chance for another downgrade if global auto demand weakens more than our base case, EBITDA margins appear unlikely to recover towards 8% by 2021 or if free cash flow is unlikely to be positive in 2020 and 2021....
