S&P lowers Ryerson

Standard & Poor's said it lowered Ryerson Inc.'s corporate credit rating to B- from B and its senior secured notes to CCC+ from B with recovery rating revised to 5 from 4. Ratings were removed from CreditWatch where they were placed on March 26 with negative implications.

The outlook is negative.

"The downgrade reflects our expectation that due to the sharp deterioration in both steel and aluminum market conditions in North America over the past several months, a trend we expect to continue in the near term, the company's overall financial profile will likely weaken to a level more consistent with a lower rating," S&P analyst Maurice Austin said in a statement.

The B- corporate credit rating reflects the company's low margins relative to some of its peers, soft end-market demand, concerns relative to working capital management, a critical factor for distribution businesses and a highly leveraged financial profile, S&P said.

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