S&P cuts Intermet ratings

Standard & Poor's said it lowered its corporate credit and senior secured bank loan ratings on Intermet Corp. to B+ from BB- and its senior unsecured debt rating to B from B+.

The outlook is negative.

S&P said the downgrade reflects concern over Intermet's increased financial leverage due to rises in raw material prices and surcharges that have not yet been collected. Total debt (adjusted for $50 million excess cash) to EBITDA increased to 5.1x as of March 31, 2004, exceeding S&P's previous expectations of total debt to EBITDA in the 3x-3.5x range.

S&P said the ratings on Intermet Corp. reflect its aggressive financial policy, leveraged capital structure, and high customer concentration, offset by its leading market position, diverse capabilities, and adequate liquidity.

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