S&P puts Oxbow on positive watch

Standard & Poor's said it placed its ratings, including the B+ corporate credit rating, on Oxbow Carbon LLC on CreditWatch with positive implications.

The CreditWatch placement acknowledges Oxbow's better-than-expected operating performance thus far in 2009 driven by the significantly improved performance of its coal business as well as better-than-expected performance from its fuel-grade coke business, the agency said.

As of June 30, the adjusted debt-to-EBITDA ratio was under 2 times, stronger than the 3.5 to 4.5 times range S&P considers to be acceptable for the current ratings.

The rating action also reflects S&P's expectation that Oxbow's operating performance over the next few quarters could be sustained at a level that would result in leverage remaining below 3.5 times. As a result, the agency believes the rating has upside potential.

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