Fitch upgrades Ryerson

Fitch said it upgraded the issuer default ratings for Ryerson Holding Corp. and Joseph T. Ryerson & Son, Inc. to BB- from B+.

The agency also affirmed the first-lien secured asset-based lending credit facility at BB+/RR1 and upgraded the first-lien secured notes to BB-/RR4 from B/RR5. The RR4 on the notes reflect the second lien on ABL collateral given most of the value would be in the ABL collateral.

“The upgrade reflects Ryerson's repayment of roughly $366 million of debt over the past two years in addition to the improved price and demand environment resulting in significant EBITDA growth and total debt/EBITDA expected to remain below 4x. The rating also reflects Fitch's expectation that FCF generation will provide capacity for further debt reduction,” the agency said in a press release.

The outlook is stable.

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