S&P assigns Evraz Oregon B+, loan BB-

Standard & Poor's said it assigned its B+ corporate credit rating to Evraz Oregon Steel Mills Inc.

The outlook is stable.

At the same time, the agency said it assigned its BB- senior secured bank loan rating, one notch above the corporate credit rating and 2 recovery rating to the company's proposed $1.2 billion senior secured term loan.

Proceeds from the proposed term loan will be used to refinance intercom any debt and to further prepay the bridge loan used to fund the purchase of the company by Evraz Group SA (BB-/negative) in January for $2.3 billion, or around 6.9x 2006 EBITDA, according to S&P.

"Strong industry conditions should allow the company to generate cash flow and reduce its high debt levels," said S&P credit analyst Marie Shmaruk.

"We could change the outlook to positive or raise the ratings if it significantly lowers debt levels and commits to running its operations with appreciably lower debt leverage. We could lower the ratings if EOSM fails to lower debt as expected and its markets materially weaken, resulting in a weaker financial profile."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.