S&P hikes Reliance

S&P said it upgraded its ratings on Reliance Inc. and its senior notes to BBB+ from BBB.

“Reliance has built balance sheet strength, a track record of earnings resilience through downturns, and a sustained improvement in its profitability through investment into its business. We expect Reliance will sustain leverage below 1.5x and generate free operating cash flow (FOCF) of about $1 billion annually over the next 12-24 months. Even while contemplating a weaker steel market and a potential increase in discretionary spending, we view Reliance's credit profile as stronger,” the agency said in a press release.

The outlook is stable.

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