Moody’s ups Russel Metals, notes; rates debt

Moody's Investors Service said it upgraded Russel Metals, Inc.'s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and senior unsecured note rating to Ba3 from B1.

At the same time, the agency assigned a Ba3 rating to Russel's proposed $125 million senior unsecured notes.

The company plans to use the note proceeds to pay down borrowings on its credit facility.

Moody's also affirmed the speculative grade liquidity rating of SGL-2.

The outlook is stable.

"The upgrade of Russel Metals' ratings reflect the significant improvement in the company's operating performance and credit metrics and the expectation these trends will continue over the next 12 to 18 months," Michael Corelli, Moody's vice president, senior credit officer and lead analyst for Russel Metals, said in a news release.

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