S&P cuts Reliance Steel outlook to negative

Standard & Poor's said that it revised its outlook on Reliance Steel & Aluminum Co. to negative from stable.

At the same time, the agency said it affirmed its existing ratings on the company, including its BBB- corporate credit rating.

"The outlook revision reflects its assessment that the company's operating performance will weaken materially as 2009 progresses due to weak end-market demand which will likely result in lower volumes and pricing due to the current challenging economic environment," said S&P credit analyst Maurice Austin.

"As a result, the agency said it expects credit measures will likely deteriorate over the next several quarters to a level that, in its opinion, would be considered weak for the current rating."

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