Moody's cuts Edgen Murray

Moody's Investors Service said it lowered Edgen Murray II, LP's corporate family rating and probability of default rating to Caa1 from B3, along with Edgen Murray Corp.'s 12¼% senior secured notes to Caa2 from Caa1.

The outlook was revised to negative from stable.

The downgrade reflects an adverse reassessment of the pace and magnitude of the rebound in Edgen Murray's sales in light of weaker than expected energy sector activity and the cumulative negative impact of global credit market disruptions, low natural gas prices, low industrial production and the strong dollar, Moody's said.

While 2010 was anticipated to be a tough year for the company, it now appears that it will be more challenging than originally thought, the agency said.

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