S&P lowers Atrium to stable

Standard & Poor’s said it revised the outlook on Atrium Windows and Doors Inc. to stable from positive and affirmed the company’s B- corporate credit rating.

The agency also said it affirmed the B- rating on Atrium’s $300 million five-year senior secured notes. The recovery rating on the notes remains at 4, indicating 30% to 50% expected default recovery.

The outlook revision reflects a view that an upgrade is unlikely at this time, given that Atrium’s EBITDA generation and margins were less than prior expectations for 2014 due primarily to additional costs incurred in the ramp-up of production to meet new business demand, S&P said.

The ratings reflect the company’s vulnerable business risk profile and highly leveraged financial risk profile, the agency said.

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