Fitch cuts Georgia Gulf

Fitch Ratings said it has downgraded Georgia Gulf Corp.'s issuer default rating to RD from C following its announcement of an extension of its exchange offer until July 1, 2009.

Georgia Gulf simultaneously announced that it has obtained extended forbearance agreements to ensure that indebtedness under its notes may not be accelerated prior to July 15 due to failure to make the $34.5 million of interest payments due April 15, the agency added.

Earlier, Georgia Gulf obtained an amendment under its senior secured credit agreement that allows the company to continue to withhold the interest payments without constituting a default under the credit agreement until the earlier of July 15 or the first day note holders may accelerate the indebtedness under such notes, Fitch said.

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