S&P: Mecachrome view negative

Standard & Poor's said it revised the outlook on Mecachrome International Inc. to negative from stable and affirmed the B+ long-term corporate credit rating.

The ratings reflect the company's continued weak cash flow generation, high leverage, the risks inherent in executing its North American growth strategy and moderate degree of customer concentration, the agency said.

These risks are partially offset by the company's established operating assets in Europe, long-standing business relationships with key customers and steady margin supported by an acceptable backlog position, S&P said.

The company has an adjusted total debt-to-EBITDA ratio of 5.9 times.

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