S&P rates Mecachrome notes B-, loans B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Mecachrome International Inc., a B- rating to the company's senior subordinated notes and a B+ bank loan rating with a recovery rating of 2 to its senior secured credit facility. The outlook is stable.

S&P said the ratings on Mecachrome reflect its high leverage and the risks inherent in executing its growth strategy in North America. Debt to EBITDA is expected to be about 5x in 2006.

The ratings are supported by the company's established operating assets in Europe, a diverse backlog with strong customers and a demonstrated ability to deliver respectable margins, the agency said.

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