NEW YORK (AFX) - Standard & Poor's Rating Services said Thursday it may downgrade the credit ratings of Hawk Corp. because of startup costs at a new manufacturing facility in Tulsa.
S&P affirmed Hawk's B+ debt rating but assigned a 'Negative' outlook to the company's credit, citing declining operating income and the startup costs for relocating manufacturing plants.
Lower debt ratings typically raise a company's borrowing costs.
Hawk manufactures brakes for aircraft and land vehicles, as well as components for agricultural and construction equipment.
Shares of Hawk closed 29 cents lower at $13.35 on the American Stock Exchange.
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