Moody's downs MAAX, notes

Moody's Investors Service said it has downgraded the long-term debt ratings and speculative-grade liquidity rating of MAAX Holdings, Inc. and MAAX Corp. The outlook is stable.

Affected ratings include MAAX Holdings' corporate family rating lowered to B3 from B2, senior unsecured discount notes due 2012 to Caa3 from Caa1 and speculative-grade liquidity rating to SGL-3 from SGL-2 and MAAX's senior secured bank credit facilities to B2 from B1 and senior subordinate notes due 2012 to Caa1 from B3.

The downgrade reflects Moody's expectations that weaker operating performance experienced so far in fiscal 2006 will not improve significantly over the near term due to continued raw material cost inflation, weaker pricing power associated with a potentially deteriorating residential repair and remodeling environment, competitive pressures and customer concentration risks.

The agency added MAAX's B3 corporate family rating is supported by the company's leading North American position in the kitchen, bathroom and spa fixtures and appliances markets, with specialization in gel-coat, acrylic and thermoplastic products.

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