Moody's assigns Euramax Caa1

Moody's Investors Service said it assigned a Caa1 corporate family rating, and a Caa1 senior secured rating to Euramax International, Inc.

The outlook is stable.

The rating action was prompted by the company's recent out-of-court restructuring transaction, which eliminated a second-lien term loan and PIK notes from the capital structure and added about $513 million of new secured term loan debt due 2013, the agency said.

Euramax's outstanding debt was reduced by about $380 million at the time of the transaction, the agency noted, adding that the Caa1 ratings reflect Moody's belief that the company's high leverage, over 10x EBITDA on a pro forma basis, may not be sustainable over the intermediate term, raising the potential for another default.

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