S&P ups Aleris International

Standard & Poor's said it raised its corporate credit rating on Aleris International Inc. (formerly IMCO Recycling Inc.) to B+ from B and raised its rating on the company's senior secured debt to B from B- and removed both ratings from CreditWatch where they were placed with positive implications on June 17.

The outlook is stable.

At the same time, S&P affirmed its B- rating on Aleris' $125 million senior unsecured notes due 2014. S&P also withdrew its ratings on Commonwealth Industries Inc. All debt at Commonwealth has been repaid.

These actions follow the announcement that IMCO and Commonwealth have completed their previously announced merger. The combined company is now called Aleris International Inc.

S&P said the upgrade of Aleris' ratings reflects the improvement in the company's business and financial profiles due to its merger with Commonwealth. Ratings on Aleris take into account its below-average business profile due to its exposure to highly cyclical and competitive industries, volatile commodity pricing, and thin margins. The financial profile is also aggressive.

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