Moody's: Edgen Murray view stable

Moody's Investors Service said it assigned a Caa1 rating (LGD4, 61%) to Edgen Murray Corp.'s proposed offering of $465 million of senior secured notes due 2016.

The B3 corporate family and probability-of-default ratings were affirmed.

Edgen Murray's outlook was changed to stable from negative due to the fact that the proposed note offering will eliminate the company's most stringent debt covenants.

Proceeds will be used to repay the company's first- and second-lien term loans.

Edgen Murray's B3 corporate family rating reflects its high leverage, exposure to highly cyclical end markets, relatively small size, negligible tangible assets and declining profitability, the agency said.

The rating is supported by the company's global presence, solid position in niche markets within the oil and gas industry, and the countercyclical nature of its working capital investment, the agency noted.

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