S&P upgrades Ryerson

S&P said it raised the corporate credit rating on Ryerson Holding Corp. to B from B-.

The outlook is stable.

The agency said it raised the rating on the company's $650 million senior secured notes to B from B-. The 4 recovery rating on the notes is unchanged, indicating 30% to 50% expected default recovery.

The upgrade reflects a view that Ryerson's credit measures are improving due to a more moderate capital structure caused by reduced debt and an equity issuance, S&P said.

In 2016, the company issued about $72 million in equity and used the majority of the proceeds to pay down its 11¼ % notes due in 2018.

The company's operating performance and EBITDA margin improvement is benefitting from an ongoing focus on higher margin, value-added products, cost cutting, stronger end-market demand and somewhat stable metals prices, S&P said.

The stable outlook reflects an expectation of improving demand, supportive macroeconomic conditions and adequate credit metrics for the rating over the next 12 months, the agency said.

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