S&P cuts Metallurg, notes to D

Standard & Poor's lowered its corporate credit rating on Metallurg Inc. and its parent Metallurg Holdings Inc. to D from CC. S&P also lowered the ratings on Metallurg's 11% senior notes due 2007 and Metallurg Holdings' 12.75% senior discount notes due 2008 to D from CC and C, respectively following the company's announcement that its parent did not make the $7.7 million interest payment due July 15 on the 12.75% senior discount notes 2008.

Despite being current on its debt obligations at Metallurg Inc., S&P said it believes the company will seek a general restructuring of its debt obligations and that lenders could receive something less than full value, which is tantamount to default.

S&P said In the event restructuring efforts fail, the probability of a bankruptcy filing is high.

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