S&P boosts Euramax

Standard & Poor's said it raised its ratings on Euramax International Inc., including the long-term corporate credit rating, to B- from D.

At the same time, the agency said it assigned a B- issue-level rating to Euramax's new $513 million first-lien debt securities due 2013. The recovery rating on this debt is 4.

The outlook is negative.

"The ratings upgrade reflects the company's highly leveraged, although somewhat improved, financial risk profile following a recent out-of-court restructuring," said S&P credit analyst Dan Picciotto.

"As a result of the restructuring, Euramax's second-lien debtholders received equity and about half of its new $513 million of first-lien debt is pay-in-kind, providing some cash flow benefit."

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