S&P: Wise Metals unaffected

Standard & Poor's said its ratings and outlook on Wise Metals Group LLC (CCC-/negative) remain unchanged despite the progress the company has made in replacing business it lost from Crown Cork & Seal Inc. Wise Metals has replaced all the fourth-quarter 2006 volume and the majority of the 2007 volume that it lost when Crown decided in the third quarter of 2006 to place this business with other producers.

S&P said that while replacement of this volume is a positive credit development, it does not currently offset the credit risk presented by the company's precarious liquidity position. Wise Metals is working on securing additional liquidity, but the agency said it is unlikely to consider a rating change until additional funding is completed and that it still believes the company's current liquidity level is insufficient for near-term operations and to meet the debt service requirements for the remainder of 2006.

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