Moody's: Russel Metals view negative

Moody's Investors Service said it revised the outlook for Russel Metals Inc. to negative from stable and affirmed the Ba1 corporate family rating and Ba1-PD probability of default rating.

At the same time, Moody's affirmed the Ba1 rating on Russel's C$300 million senior unsecured notes and assigned a speculative grade liquidity rating of SGL-2.

Moody's said the change in outlook reflects the company's weaker than expected operating results and credit metrics, which are attributable to an increase in leverage to pursue acquisitions and softer than expected end market demand and product pricing.

It also reflects Moody's expectation that the company's operating results are likely to remain weak in the short-term, the agency added.

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