Moody's lowers RathGibson

Moody's Investors Service said it downgraded the corporate family rating of RathGibson, Inc. to B3 from B2, affirmed the B3 senior unsecured note rating in accordance with Moody's loss-given default methodology and lowered the speculative-grade liquidity rating to SGL-3 from SGL-2.

The outlook is stable.

The agency said that the downgrade of the CFR to B3 reflects a confluence of events resulting in credit metrics that are not representative of a B2 rating while RathGibson's performance has not improved significantly over the last two years despite generally higher overall prices, reasonable strength in several end markets and two material acquisitions.

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