Moody's reviews Euramax

Moody's Investors Service said it placed the B2 corporate family rating of Euramax International, Inc. under review for downgrade.

Euramax has a first-lien senior secured term loan and revolver rated B1 (LGD3, 34%) and second-lien senior secured term loan rated Caa1 (LGD5, 81%).

The agency said it believes the risk of financial covenant violations in 2008 has heightened due to growing softness in the company's end-markets, particularly in its European operations and building products segment.

These markets will continue to soften into 2009, Moody's said, and as a result, the company's access to its revolving credit facility may be limited by financial covenant challenges.

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