S&P affirms RathGibson

Standard & Poor's said it affirmed RathGibson Inc.'s B corporate credit rating and removed it from CreditWatch, where it was placed with negative implications on May 1 following the company's announcement that it agreed to be acquired by DLJ Merchant Banking Partners for roughly $440 million.

The outlook is negative.

The affirmation follows completion of the leveraged buyout. The agency said the ratings reflect RathGibson's vulnerable business profile as a manufacturer of stainless steel and alloy-welded tubular products for cyclical niche markets, as well as the company's highly leveraged capital structure and thin cash flow protection following the buyout.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.