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April 21, 2008 |
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ALERIS INT'L: S&P Puts Ratings on Watch Neg. on Weak End Markets Standard & Poor's Ratings Services placed its ratings for Aleris International Inc., including the 'B+' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing reflects our assessment that the weak end-market demand in the company's North American rolled and extruded products segment is likely to continue over the next several quarters," said Standard & Poor's credit analyst Maurice Austin, "primarily because of weaker demand for building and construction, distribution, and transportation products. This, combined with increased debt balances due to the company's aggressive growth strategy over the past few years, has resulted in credit measures that we would consider to be weak for the rating." In resolving the CreditWatch listing, S&P will review the company's near-term operating and financial strategy in light of the difficult operating conditions and evaluate its cash flow generation capability. About Aleris International Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE:ARS) -- http://www.aleris.com/ -- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company's international segment provides aluminum metal to customers through both tolling arrangements and product sales, and the types of scrap that it recycles are similar to those processed by Aleris’ U.S. recycling facilities. In 2004 its five plants have a rated annual capacity of 1.08 billion pounds. The operations include two aluminum recycling and foundry alloy plants in Germany as well as aluminum recycling facilities in Brazil, Mexico and Wales. The segment’s growth is largely a result of its development and use of efficient scrap preparation and recycling technologies that allow high recovery of metal and delivery of a top-quality product. In Asia, the company has subsidiaries in Hong Kong and China. |
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