S&P rates Aleris notes B-

Standard & Poor's said it revised the outlook on Aleris International Inc. to negative from stable and affirmed its B+ corporate credit rating.

S&P also assigned a B- rating to the company's $105 million 9% senior notes due 2014, which are an add-on to the company's existing $600 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 the trend will continue in the near term, the agency said.

The ratings reflect the company's high debt leverage, thin margins, acquisitive nature and exposure to highly cyclical and competitive industries, S&P said.

The ratings also reflect the company's industry fundamentals, limited exposure to raw material costs and improved product, geographic and end-user diversification, the agency said.

The company's pro forma adjusted debt-to-EBITDA ratio including acquisition synergies is more than 5 times.

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