S&P rates IMCO Recycling notes CCC+

Standard & Poor's said it assigned its CCC+ rating to IMCO Recycling Escrow Inc.'s proposed $125 million senior notes due 2014 and placed the rating on CreditWatch with positive implications.

At the same time, all existing ratings on IMCO Recycling Inc. remain on CreditWatch with positive implications, where they were placed June 17 following the announcement that IMCO and Commonwealth Industries Inc. had signed a definitive merger agreement. The transaction is structured as an all-stock deal.

S&P also revised its outlook on Commonwealth Industries to stable from positive and affirmed its existing ratings on the company.

S&P said the positive CreditWatch implications on IMCO reflect the expected improvement in the company's business and financial profiles following its planned merger with Commonwealth, which is expected to close in the fourth quarter of 2004 and is subject to customary closing conditions.

Upon completion of the merger, S&P said it will raise IMCO's corporate credit rating to B+ from B, its $210 million senior secured notes rating to B from B-, and IMCO Recycling Escrow's $125 million senior notes rating to B- from CCC+. The ratings will then be removed from CreditWatch. These rating actions will be contingent on IMCO successfully completing the transaction as planned.

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