Fitch Downgrades Georgia Gulf Rating

NEW YORK (AP) — Fitch Ratings said Tuesday that it has downgraded Georgia Gulf Corp.'s issuer default rating to "RD" from "C'' — the lowest junk rating — after the struggling chemical producer announced an extension of its debt exchange offer until July 1.

The company said Monday it has extended the expiration date for $800 million in debt as it seeks to swap shares of stock for debt. Georgia Gulf also said it obtained agreements to ensure that lenders may not call in debt payments before July 15 because it did make a $34.5 million interest payment due April 15.

Georgia Gulf has withheld interest payments of $3.6 million on its 2013 notes due June 15. The company, which makes vinyl-based building and home improvement products and has been battered by the housing slump, warned Monday that if it loses access to funding it may be forced to file for bankruptcy protection.

The downgrade reflects Fitch's view that Georgia Gulf has not made a payment on a bond, loan or other financial obligation, but has not gone into bankruptcy, receivership, liquidation or some other former winding-up procedure.

Georgia Gulf shares rose 24 cents to finish at 75 cents in trading Tuesday. The shares have traded between 22 cents and $4.88 over the past year.