Moody's lowers Barzel

Moody's Investors Service said it downgraded Barzel Finco's probability of default rating to D from Ca while affirming all other ratings.

The outlook remains negative.

Moody's said it believes that Barzel did not make the interest payment on its $315 million of 11.5% senior secured notes, which was due on May 15, 2009, within the 30-day grace period.

Moody's said it deems a default to have occurred when an interest payment is not made by the end of a grace period, regardless of whether an event of default has been declared by note holders.

The negative outlook reflects continued uncertainty regarding Barzel's viability as a going concern in its current structure, the agency added.

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