S&P rates CMC di Ravenna, notes B

Standard & Poor's said it assigned its B long-term corporate credit rating to CMC di Ravenna.

The outlook is stable.

The agency also assigned a B issue rating to the €300 million 7½% senior unsecured notes due 2021. The recovery rating is 4, indicating an expectation of average (30%-50%) recovery for creditors in the event of a payment default.

S&P said the B corporate credit rating on CMC reflects its assessment of the company's "weak" business risk profile and "aggressive" financial risk profile.

CMC issued a €300 million senior unsecured seven-year bond to refinance its capital structure. It used the bond proceeds to redeem outstanding bank debt of about €234 million and roughly €60 million of off-balance sheet recourse factoring lines, and to generally extend the group's maturity profile, leaving about €6 million of cash for general corporate purposes.

As part of its refinancing plan, CMC also benefits from a new €100 million three-year committed and undrawn revolving credit facility.

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