Moody's may cut Ryerson

Moody's Investors Service said it placed the ratings for Ryerson Inc. (B1 corporate family rating) under review for possible downgrade.

The agency said that the review was prompted by the announcement that Ryerson has entered into a definitive merger agreement with Platinum Equity in a transaction valued at $2.0 billion.

The review for downgrade reflects Moody's concerns that the Platinum Equity acquisition, or any competing proposal, will result in higher leverage at Ryerson than it has typically employed, the agency said, noting that the review will focus on the terms of the proposed transaction and the new debt, pro forma credit metrics and Platinum Equity's strategic and operational plans for managing the company.

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