S&P drops Continental Alloys to CCC

Standard & Poor's said it lowered Continental Alloys & Services Inc.'s corporate credit rating to CCC from B- and kept ratings on CreditWatch, where they were placed on May 12 with implications revised to developing from negative.

"The downgrade reflects our continued expectation that weak end-market demand for the company's products due to reduced drilling activity in North America, will result in weaker operating results over the next few quarters," S&P analyst Sherwin Brandford said in a statement.

The agency said it expects the company's leverage to increase to about 5x.

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