Moody's drops Euramax to Ca

Moody's Investors Service said it downgraded Euramax International, Inc.'s corporate family and probability-of-default ratings to Ca from Caa1, its first-lien senior secured term loan and revolver to Caa3 (LGD3, 34%) from B3 and second-lien senior secured term loan to C (LGD5, 80%) from Caa2.

The company recently entered into its fifth forbearance agreement under its credit agreement, increasing the likelihood of default.

The outlook remains negative.

According to the agency, the action reflects the heightened risk of a default under the company's credit agreement and the possibility of an out-of-court restructuring if management is unsuccessful in obtaining an agreement from its lenders.

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