S&P ups Earle M. Jorgensen notes to B

Standard & Poor's said it raised its secured debt rating on Earle M. Jorgensen Co.'s 9¾% senior secured notes due 2012 to B from B-. The corporate credit rating was affirmed at B+. The outlook is stable.

S&P said the upgrade reflects the notes' improved recovery prospects given the meaningful increase in the company's asset base due mainly to increased working capital levels from stronger market conditions and the assumption that revolving credit facility borrowings will be lower than original estimates in light of favorable steel industry conditions.

The ratings on Jorgensen reflect its below-average business position, aggressive financial management and volatile cash flow due to working capital swings, according to S&P.

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