S&P rates Euramax notes B-

Standard & Poor’s said it placed the CCC corporate credit rating on Euramax International Inc. on CreditWatch with developing implications, pending the launch of the company’s proposed $385 million five-year senior secured notes.

The agency also said it assigned a preliminary B- rating to the proposed senior secured notes. The recovery rating on the existing and proposed senior secured debt is 4, indicating 30% to 50% expected default recovery.

Assuming the proposed transaction is completed according to terms and conditions, S&P said it will resolve the CreditWatch listing and raise the corporate credit rating on Euramax to B- from CCC.

The outlook would be stable, reflecting that Euramax’s liquidity would remain adequate and that operations would continue to modestly improve over the next 12- to 24-months.

If Euramax does not refinance its existing $375 million notes due 2016, S&P said it will reassess the ratings on the company with a high likelihood that ratings could be lowered to CCC- from CCC if the company’s existing debt-maturity structure is not extended.

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