S&P cuts MAAX, notes

Standard & Poor's said it lowered its long-term corporate credit rating on MAAX Holdings Inc. to B- from B.

At the same time, the agency said it lowered the rating on the company's senior discount notes to CCC.

In addition, the ratings on subsidiary, MAAX Corp., including the secured bank facility were lowered to B- from B and its senior subordinated debt rating to CCC from CCC+. The outlook was revised to negative.

S&P said the ratings on MAAX were lowered because of weak earnings and its expectations that the company will continue to face high raw material costs and a high Canadian dollar.

The ratings on MAAX Holdings reflect the company's very aggressive financial profile with high leverage and the weak business position with high customer concentration in the competitive bathroom fixtures industry, S&P noted, adding these risks are partially offset by the company's attractively positioned product mix and distribution capability and its ability to generate free cash flow.

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