S&P downgrades Revere

Standard & Poor's said it lowered the corporate credit rating of Revere Industries LLC to B- from B and kept the ratings on CreditWatch with negative implications, where they were placed on Nov. 6, 2006.

The agency said the downgrade reflects Revere's weakened financial profile. Financial leverage remains high at more than 7x pro forma as of June 30, despite recent debt reduction made possible by asset sales, and interest coverage metrics are lower.

The weakened financial profile is due largely to Revere's exposure to residential construction and previous customer product launch difficulties, S&P said, and its business profile has materially changed with the sale of most assets of its rolled aluminum division, which represented one-third of revenue and EBITDA. Revere sold the assets to satisfy lenders and reduce leverage after its weak 2006 operating performance.

The ratings remain on CreditWatch because Revere remains out of compliance with its credit facilities' financial covenants. The company is currently on a 60-day waiver and is seeking an amendment to the covenants.

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