S&P lifts Edgen Group

Standard & Poor's said it assigned a B+ corporate credit rating to EDG Holdco LLC, a subsidiary of Edgen Group Inc.

S&P also said it raised Edgen Murray Corp.'s $465 million senior secured notes to B+, which is the same as the corporate credit rating, from B. The recovery rating on these notes remains 4, indicating 30% to 50% expected recovery in a default.

The agency also raised the corporate credit rating on Edgen Murray II LP, the former parent of Edgen Murray Corp., to B+ from B and withdrew the rating.

The ratings also were removed from CreditWatch, where they were placed with positive implications in April.

The ratings reflect the company's weak business risk and aggressive financial risk profiles, said S&P analyst Megan Johnston.

These assessments are based on the company's relatively modest size, its exposure to volatile metals prices and a dependence on the cyclical energy markets for a large portion of its earnings, Johnston said.

"Still, we believe the company has long-standing supplier and customer relationships, faces minimal capital expenditure requirements and possesses the ability to generate cash from working capital during periods of soft end markets," she said.

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