S&P: Atrium remains on watch

Standard & Poor's said Atrium Cos. Inc.'s CCC+ corporate credit rating will remain on CreditWatch with negative implications, where they were initially placed in September following a tightening of its senior secured leverage covenant.

The watch was maintained despite the $5.7 million in equity contributions by the company's owners, S&P said.

While the equity infusion provides near-term covenant relief, operating performance will need to improve as the senior secured leverage covenant steps down to 5.5x on Jan. 1, 2013, the agency said.

The ratings reflect the company's highly leveraged financial risk profile and its vulnerable business risk profile, S&P said.

The ratings also consider its presence in the highly competitive and fragmented windows industry and its exposure to volatile raw material costs, especially resin and aluminum, the agency said.

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