S/P DOWNGRADES ALLEGHENY INTL <AG> SENIOR DEBT
Standard and Poor's said it downgraded
446 mln dlrs of Allegheny International Inc's senior debt to
CCC from B-minus and subordinated debt to CCC-minus from
CCC-plus.
    Also downgraded to CCC-plus from B was the senior debt of a
unit Allegheny Sunbeam Corp. Allegheny's preferred stock was
affirmed at C.
    S and P cited further erosion in the firm's flexibility due
to a restrictive bank loan agreement and limited debt servicing
capability. In spite of restructuring efforts, the firm
reported first quarter losses of 38.5 mln dlrs.
 Reuter
