S&P cuts Aleris outlook to negative

Standard & Poor's said it revised its outlook on Aleris International Inc. to negative from stable.

At the same time, the agency said it affirmed its B+ corporate credit rating and the other ratings on the company.

Concurrently, S&P said it assigned a B- rating to the company's proposed $200 million 9% senior notes due 2014, which are an add-on to the company's existing $400 million 9% senior notes due 2014.

The outlook revision reflects recent operating weakness in the company's North American rolled and extruded products segment and the expectation that this trend will continue in the near term, S&P said, noting that the ratings on Aleris reflect the company's high debt leverage, thin margins, challenges in integrating recent acquisitions, its acquisitive nature and exposure to highly cyclical and competitive industries.

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