S&P cuts Asia Aluminum

Standard & Poor's said it lowered the long-term corporate credit rating on Asia Aluminum Holdings Ltd. to B+ from BB- and its $450 million senior unsecured notes due 2011 to B+ from BB-.

The outlook is stable.

The downgrade reflects financial performance for the fiscal year ended June 30 that fell short of the agency's expectations, according to S&P. The issuer's total debt-to-EBITDA ratio was 5.4 times.

In particular, the company's cash flow protection metrics failed to improve to a level to maintain the previous BB- rating despite a significant increase in turnover, the agency said.

But the company's expansion projects, which contributed to weak financial performance with delays and cost overruns, are closer to completion, according to S&P.

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