S&P: Reliance Steel unchanged

Standard & Poor's said its ratings and outlook on Reliance Steel & Aluminum Co. (BBB-/stable) are unchanged following the company's announcement that it will not proceed with its previously announced public offering of common stock due to market conditions.

The agency said that the company expected to use the proceeds of the offering to fund a portion of the $1.1 billion for its pending acquisition of PNA Group Holding Corp.

Reliance will now fund the acquisition with the proceeds of a new term loan and borrowings under its existing revolving credit facility. Reliance expects the acquisition to close in August, S&P added.

The agency said that its current rating and outlook on Reliance reflect its expectation that while the company's somewhat aggressive growth strategy will continue, Reliance will pursue it in a manner that maintains investment-grade credit metrics consistent with the rating.

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