Moody's cuts Ryerson Tull, rates notes B2

Moody's Investors Service said it lowered its ratings for Ryerson Tull Inc. (senior implied to B1) and assigned a B2 rating to the company's proposed $150 million of senior unsecured notes due 2011. The outlook is stable.

Moody's also cut Ryerson Tull's senior unsecured issuer rating to B2 from B1 and $100 million of 9 1/8% senior unsecured notes due 2006 to B2 from B1.

This concludes Moody's review of Ryerson, which was placed under review for possible downgrade on Nov. 1 following the company's announcement of its agreement to acquire Integris Metals Inc. from Alcoa and BHP Billiton.

Moody's said the downgrades reflect the significantly greater debt that Ryerson will have following the acquisition, its very low profit margins and the cyclicality of the metals sector.

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