S&P affirms International Mill's B+, view negative

Standard & Poor's said it affirmed its B+ corporate credit rating on International Mill Services Inc., removing it from CreditWatch where it was placed on Sept. 12. The outlook is negative.

S&P said it also assigned its B+ rating and recovery rating of 3 to the company's amended and restated $328 million first-lien senior secured term loan due in 2010.

S&P affirmed its B+ rating and recovery rating of 3 on the company's $55 million revolving credit facility due in 2009 and affirmed its B- and 5 recovery rating on the company's second-lien senior secured $50 million term loan due in 2011.

S&P withdrew ratings it assigned to International Mill's Tube City IMS Corp. affiliate on Sept. 12 as the company did not complete a proposed transaction.

The ratings reflect the company's below-average business position due to limited diversity, exposure to the cyclical steel industry, customer concentration risk and aggressive financial policies, S&P said.

Offsetting the risks are stable revenues and cash flow provided through long-term contracts, favorable niche business position and good margins, S&P said.

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