S&P trims Wise Metals

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

The outlook is negative.

At the same time, S&P lowered the issue rating on Wise Metals’ $650 million senior secured notes due 2018 to CCC+ from B-. The recovery rating remains at 4, indicating an expectation of average recovery prospects in the higher half of the 30%-50% range.

S&P also lowered the issue ratings on the $150 million payment-in-kind toggle notes due 2019 to CCC- from CCC. The recovery rating remains at 6, reflecting an expectation of negligible recovery of 0%-10% in the event of a default.

The downgrade reflects weaker-than-expected performance at Wise Metals, S&P’s view of the company’s unsustainable capital structure, and S&P’s opinion that improvement prospects have weakened, S&P said in a news release.

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