Despite recent operational improvements, global auto component supplier International Automotive Components Group S.A.'s (IAC) free operating cash flow (FOCF)-to-debt ratio will likely remain weak over the next 12 months leading up to June 2018, when a significant amount of its debt matures. We are affirming all of our ratings on IAC, including the 'B' corporate credit rating, given our expectation for a steady operational performance following the year-over-year improvements in the company's EBITDA margins and liquidity in 2016. The negative outlook reflects the increased likelihood that we may downgrade IAC in the next 12 months as elevated cash restructuring costs increase the company's reliance on its credit facilities. On March 24, 2017, S&P Global Ratings affirmed all of its ratings
