Moody's assigns Russel Metals notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Russel Metals' proposed C$300 million senior unsecured notes.

At the same time the agency said it affirmed the company's Ba1 corporate family rating, Ba1 probability of default rating and Ba1 rating for the existing $139 million 6.375% senior unsecured notes due 2014. The outlook is stable.

The agency said the Ba1 corporate family rating considers Russel Metals' solid market position in the Canadian metal service center industry, its size and scale, a history of stable cash flow generation, relatively low leverage, counter-cyclical working capital investment that enhances liquidity in down markets and a disciplined and successful acquisition track record.

However, the agency said the rating also reflects the company's exposure to highly volatile end-markets and pricing, and, therefore, volatile earnings generation.

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