S&P drops Atrium to CCC-

Standard & Poor's said it lowered the corporate credit rating on Atrium Cos. Inc. to CCC- from B-, senior secured bank credit facilities to CCC- from B- with 4 recovery rating and senior subordinated notes due 2012 to CC from CCC with 6 recovery rating.

The outlook is negative.

"The downgrade reflects our assessment that Atrium's ability to service its current capital structure over the intermediate term will be challenged given our expectation for difficult operating conditions to continue due to the depressed new construction end-markets and expected decline in repair and remodeling activity," S&P analyst Tobias Crabtree said in a statement.

Ratings reflect the company's high debt burden, limited liquidity, highly competitive cyclical markets and vulnerability to volatile raw material input costs, the agency said.

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