S&P: Euramax view stable

Standard & Poor's said it affirmed its ratings on Euramax International Inc., including its BB- corporate credit rating, and revised its outlook on the company to stable from negative.

S&P said the outlook revision reflects Euramax's increased financial flexibility and liquidity profile resulting, in part from improved earnings and cash flow performance and from sufficient capacity under the company's committed bank credit facility. Since Euramax typically generates a modest amount of annual free cash flow, its liquidity profile appears satisfactory with its business objectives and commensurate with stable outlook.

The ratings on Euramax reflect its aggressive financial profile, fair credit protection measures, and below-average business risk profile as a manufacturer of niche products enjoying leading positions in cyclical markets, including the do-it-yourself market for rain-carrying (gutter) systems and aluminum sidewalls to the towable recreational vehicle and manufacturing housing markets, the agency said.

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