S&P upgrades Euramax

Standard & Poor’s said it raised the corporate credit rating on Euramax International Inc. to B- from CCC and removed the rating from CreditWatch, where it was placed with developing implications in July.

The outlook is stable.

S&P also said it assigned a B- rating to the company’s proposed $385 million senior secured notes. The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

The upgrade and stable outlook reflect a view that Euramax is no longer dependent on favorable business, financial and economic conditions to meet its financial commitment on its obligations, the agency said.

With the successful refinancing of its capital structure, Euramax has stabilized liquidity enough to continue to drive operating performance through its recent cost-cutting program and operational overhaul, S&P added.

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