S&P lowers Wise Metals

Standard & Poor’s said it lowered its long-term corporate credit rating on Wise Metals Intermediate Holdings LLC to B- from B. The outlook is negative.

At the same time, S&P affirmed its B- issue rating and revised the recovery rating to 4 from 5 on the $650 million senior secured notes co-issued by Wise Metals Group LLC And Wise Alloys Finance Corp. due 2018. Recovery prospects in the event of a payment default are in the higher half of the 30%-50% range.

S&P also lowered the issue rating on the $150 million senior unsecured payment-in-kind toggle notes co-issued by Wise Intermediate Holdings LLC and Wise Holdings Finance Corp. due 2019 to CCC from CCC+. The 6 recovery rating on these notes remains unchanged.

S&P said the downgrade takes into account that S&P now expects only $65 million to $70 million EBITDA in 2015 at Wise Metals, versus the $140 million to $160 million the agency expected previously.

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