Fitch cuts Interpipe to B

Fitch Ratings said it downgraded Interpipe Ltd.'s long-term issuer default rating and senior unsecured rating to B from B+ and short-term issuer default rating at B. The recovery rating on the senior unsecured rating remains at 4.

The outlook remains negative.

The downgrade of Interpipe reflects the company export orientation and comparatively high level of commodity steel production, which means that its operating results and financial metrics are expected to be proportionally more than affected than most other steel producers given the background of a global economic recession and associated sharp downturn in steel prices, Fitch said.

The agency also said it is concerned that foreign-currency-providing banks may not refinance Interpipe's credit lines, which could expose the company to liquidity and refinancing risks.

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