S&P: AmeriCast notes on watch

Standard & Poor's said it placed its B- rating on AmeriCast Technologies Inc.'s senior unsecured notes on CreditWatch with negative implications.

The CreditWatch listing is based on the possibility that the company might finance its pending acquisition of Atlas Castings and Technology with senior secured debt and as a result, further disadvantage the currently outstanding senior unsecured notes, the agency said, adding that its B corporate credit rating on AmeriCast was affirmed and not placed on CreditWatch.

The outlook is stable.

The agency said that it will resolve the CreditWatch listing after reviewing AmeriCast's capital structure upon completion of the acquisition or its cancellation.

S&P noted that it could lower the rating on senior unsecured notes one notch to CCC+ and, alternatively, could affirm the rating at B-.

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