S&P cuts Allegheny Technologies, notes to BB+

Standard & Poor's said it lowered its corporate credit rating on Allegheny Technologies Inc. to BB+ from BBB-.

The outlook is stable.

The agency also lowered the rating on the company's senior unsecured notes to BB+ from BBB- and assigned a 3 recovery rating to the senior unsecured debt, indicating an expectation for meaningful (lower half of the 50% to 70% range) recovery in the event of payment default.

S&P said the downgrade reflects its view that Allegheny’s credit metrics will remain more in line with expectations for a BB+ rating rather than BBB-.

By year-end 2014, debt to EBITDA was 6 times, compared with the expectations that the company would achieve roughly 4.5 times when the agency revised the outlook to negative in early 2014.

S&P revised Allegheny’s financial risk profile to "aggressive" from "significant," based on expected leverage and cash flow coverage ratios under its base-case forecast.

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