Standard & Poor's Downgrades TriMas' Outlook

NEW YORK (AP) — Standard & Poor's Ratings Services Friday downgraded TriMas Corp.'s outlook to negative citing lower demand, but backed the diversified manufacturer's credit ratings.

Lower demand in key markets and weakening operating performance could weaken TriMas' credit measures in the coming quarters, said Standard & Poor's credit analyst John Sico. That could potentially limit headroom over the Bloomfield Hills, Mich.-based company's financial covenants in the second half of the year, he added.

Standard & Poor's lowered the company's outlook to negative from stable. It backed its ratings including its non-investment grade corporate credit rating of 'B+.'

The ratings agency anticipates the company will use free cash flow toward debt reduction this year, which could help to offset lower earnings.

TriMas' key credit measures were relatively flat last year, according to Standard & Poor's. And it benefited from favorable market conditions for its packaging, energy and speciality industrial businesses. This helped to offset lower demand for recreational vehicles and trailer products hurt by the recession and lack of credit available.

Shares of TriMas fell 10 cents, or 5 percent, to close at $1.89.