Moody's affirms Euramax

Moody's Investors Service said it affirmed the long term debt ratings of Euramax International, Inc. The outlook is stable.

Affirmed ratings include the company's corporate family rating at B2, $332 million guaranteed first-lien senior secured tranche B term loan due 2012 at B2, $190 million guaranteed second-lien senior secured term loan due 2012 at Caa1, Euramax Netherlands BV's $118 million guaranteed first-lien senior secured tranche B term loan due 2012 at B2 and $180 million guaranteed first-lien senior secured revolving credit facility due 2011 at B2.

Euramax's B2 corporate family rating incorporates its leading market position in a number of niche markets, including roof drainage products and fabricated aluminum, steel, fiberglass and vinyl products for construction and recreation vehicles, as well as its ability to consistently generate free cash flow despite high financial leverage, Moody's said.

The ratings also capture Euramax's high degree of financial leverage, vulnerability to cyclical end-use markets and raw material price volatility and significant customer concentration risks with retail home centers, the agency noted.

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