S&P upgrades Russel Metals

Standard & Poor's said it raised its ratings on Russel Metals Inc., including the long-term corporate credit rating, which was raised to BB from BB-. At the same time, S&P assigned its BB- rating to Russel Metals' proposed US$175 million notes.

The new notes and the recent C$45 million equity issue will be used to repurchase the company's US$125 million 10% senior unsecured notes, C$30 million preferred shares, and C$30 million 8% subordinated notes.

The outlook is stable.

"The upgrade stems from Russel Metals' good financial performance through a period of difficult conditions in the North American steel market," said S&P credit analyst Donald Marleau. "The company has strengthened its business profile in recent years with a steady acquisition strategy, without materially increasing its financial risk."

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