S&P lowers AGY outlook to negative, gives notes B-

Standard & Poor's said it revised its outlook on AGY Holding Corp. to negative from stable.

At the same time, S&P said it affirmed its B corporate credit rating on AGY.

In addition, the agency said it assigned its B- rating and a recovery rating of 3 to the company's proposed $175 million second-lien senior secured notes.

The B- rating on the second-lien notes is one notch below the corporate credit rating to reflect the notes' junior claim on collateral and the presence of higher priority debt in the capital structure, according to the agency, which added that the ratings reflect a vulnerable business position in a relatively narrow segment of the glass fiber market, with meaningful concentration of revenue and operating profits in a few customers and product-applications and a highly leveraged financial profile.

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