Moody's: Euramax to positive

Moody's Investors Service said it affirmed the Caa1 corporate family rating of Euramax International, Inc. and assigned a Caa1 (LGD4, 50%) rating to the company's proposed $375 million of senior secured notes due 2016.

The rating outlook was changed to positive from stable.

The rating action was prompted by the company's recent refinancing of its existing debt with proceeds from the rated notes, ABL borrowings and a new unrated term loan used to repay its amended and restated secured term loan due in 2013.

The affirmation and positive outlook reflect the company's improved operating performance in 2010, prospects for 2011 and the new capital structure, which extends the maturity profile by three years, lowers interest expense and eliminates restrictive financial maintenance covenants, Moody's said.

The ratings consider the company's high adjusted leverage, low adjusted interest coverage, sluggish operating performance due to the continued weakness of the residential and commercial building markets, and the slow recovery of the global economy in general, the agency said.

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