I've seen lots of these do that - the vinyl coating gets hairline cracks in it, or is nicked and pierced by utensils, etc. and water gets in and starts to rust the bar under the vinyl. I would recommend replacing it as the rust will cause a reaction with other metals in the dishwasher - specifically flatware, and you'll start to see small rusty spots on them. There are lots of those racks around, still in good condition so it shouldn't be too hard to find spares for reasonable prices. The drying heater inlet under the lower rack also caused problems by degrading the vinyl coating. I usually try to catch the machine before the dry cycle if it doesn't have the energy saver switch to try to preserve the original racks as long as possible. It's a pity too, were it not for the racks rusting, many a beautiful KitchenAid dishwasher would still be in use.