S&P lowers AMH view to negative

Standard & Poor's said it revised its outlook on AMH Holdings Inc. and its operating subsidiary Associated Materials Inc. (AMI) to negative from stable.

The B corporate credit ratings were affirmed, S&P added.

The agency said the outlook revision reflects the likelihood that raw-material cost pressures and sluggish repair and remodeling demand in the Midwest will continue to negatively affect AMH's earnings and free operating cash flow.

The ratings on AMH and AMI reflect a highly leveraged financial profile, exposure to volatile raw-material costs, cyclical end markets and relatively high overhead costs, the agency added.

S&P said these negatives overshadow the benefits provided by its position as a midsize manufacturer of exterior residential building products and its company-owned distribution centers.

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