S&P: Aleris International on watch

Standard & Poor's said it placed its BB- corporate credit and other ratings on Aleris International Inc. on CreditWatch with negative implications.

S&P added that the rating action follows the announcement that Texas Pacific Group has come to an agreement to acquire the outstanding stock of Aleris for $1.7 billion plus assume or repay $1.6 billion of debt.

The agency noted that the CreditWatch placement reflects concerns of additional debt in the capital structure, adding that it could lower the ratings if financial leverage materially increases.

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