S&P cuts Allegheny Tech

Standard & Poor's said it lowered its corporate credit rating on Allegheny Technologies Inc. to BB- from BB and its senior unsecured debt rating to B+ from BB-.

At the same time, all the ratings on the company were removed from CreditWatch, where they were placed on Oct. 23, 2003 with negative implications. The outlook is stable.

S&P said the downgrade reflects the challenges the company continues to face in its highly cyclical, commodity flat-rolled stainless steel products segment, from which it derives the majority of its revenues.

S&P said the ratings on Allegheny reflect a highly competitive industry, its poor operating performance and credit measures, weak demand from its cyclical end markets, and an aggressive financial profile (including underfunded postretirement obligations).

The ratings also reflect the company's good market position in a broad range of specialty metals, fair liquidity, and cost reduction efforts.

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