S&P drops Euramax

Standard & Poor's said it lowered its ratings on Euramax International Inc., including the corporate credit rating, which was lowered to B- from B.

The outlook is negative.

The agency said that the rating action reflects the company's weakened performance due to challenging market conditions in the domestic recreational vehicle and certain nonresidential construction markets.

S&P added that the company's operating margin is below peak 2004 levels and could remain at this level if market conditions do not improve and, consequently, the risk of a covenant violation has increased.

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