S&P rates Euramax notes B-

Standard & Poor's said it affirmed the B- corporate credit rating on Euramax International Inc.

The agency also assigned a B- rating to the company's proposed $375 million senior notes due 2016 with a recovery rating of 3, indicating 50% to 70% recovery in a default.

The outlook is stable.

The affirmation reflects an expectation that the company is likely to improve its credit measures, which are currently consider to be weak, S&P said.

However, once the refinancing transaction is completed, concerns about potentially limited headroom under financial maintenance covenants will be mitigated, the agency said.

Euramax remains highly leveraged, but market conditions appear likely to improve in 2011, S&P added.

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