Moody's could lower Atrium

Moody's Investors service said it placed Atrium Corp. on review for downgrade, reflecting operating pressure from the homebuilding and remodeling market slowdown.

The possible downgrade also reflects concerns that the company's cost-cutting initiatives will be insufficient to maintain positive free cash flow generation in 2008.

Under review are the issuer's corporate family and probability-of-default ratings at B2, its $174 million senior discount notes due 2012, previously at Caa1 (LGD6, 90%) and speculative grade liquidity rating, downgraded to SGL-4 from SGL-3.

Also on review are Atrium Cos., Inc.'s $378.5 million senior secured term loan B due 2012, previously B1, at (LGD3, 35%) and $50 million senior secured revolving credit facility due 2011, previously B1, at (LGD3, 35%).

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