S&P rates Aleris loan B-

S&P said it affirmed its B- corporate credit rating on Aleris International Inc.

The outlook is stable.

At the same time, the agency assigned its B- issue-level rating to the company's proposed $1.1 billion senior secured first-lien term loan due 2023.

The 4 recovery rating indicates an expectation of average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default.

“While the proposed refinancing will extend the company's debt maturity profile and support Aleris' liquidity position, additional cost overruns or extended outage activity could further stretch credit metrics in the near term,” S&P said in a news release.

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