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TEXT-S&P affirms Aleris International 'B+' note ratings
March 1, 2012 / 10:22 PM / 6 years ago

TEXT-S&P affirms Aleris International 'B+' note ratings

 (The following statement was released by the rating agency)	
 March 1 - Standard & Poor's Ratings Services said today that it has
affirmed its 'B+' issue-level rating on Beachwood, Ohio-based aluminum products
manufacturer Aleris International Inc.'s (Aleris; B+/Stable/--) $500 million
senior unsecured notes. At the same time, we revised the recovery rating on
these notes to '4' from '3'. The '4' recovery rating indicates our expectations
for an average (30% to 50%) recovery in the event of a payment default. (For the
complete recovery analysis, see our recovery report on Aleris International to
be published later on RatingsDirect.)	
	
"We have revised our recovery rating on Aleris' notes to better capture the 	
potential that asset-based lending credit facility claims could dampen 	
recovery prospects for noteholders," said Standard & Poor's credit analyst 	
Maurice Austin.	
	
The corporate credit rating on Aleris reflects our assessment of the company's 	
business risk profile as "weak" and financial risk profile as "aggressive" (as 	
our criteria define those terms). The ratings also reflect Aleris' 	
participation in the highly competitive aluminum industry, highly cyclical and 	
competitive end markets, and thin operating margins. In our view, however, the 	
company still benefits from improving industry fundamentals, manageable debt 	
levels, and adequate liquidity to meet its near-term obligations.	
	
RELATED CRITERIA AND RESEARCH	
Corporate Ratings Criteria, April 15, 2008	
	
RATING LIST	
	
Aleris International Inc.	
 Corporate Credit Rating                B+/Stable/--	
	
Ratings Affirmed; Recovery Ratings Revised	
                                     To                 From	
 Senior Unsecured                       B+	
  Recovery Rating                       4                  3	
	
	
Complete ratings information is available to subscribers of RatingsDirect on 	
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 	
by this rating action can be found on Standard & Poor's public Web site at 	
www.standardandpoors.com. Use the Ratings search box located in the left 	
column.	
	
 (New York Ratings Team)	
 

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