S&P rates Worthington notes BBB

Standard & Poor's said it revised its outlook on Worthington Industries Inc. to stable from negative, and affirmed its BBB corporate credit and senior unsecured debt ratings. The agency also said it assigned a BBB issue-level rating to the company's proposed senior unsecured notes, issued under the company's shelf registration.

Proceeds from the notes are expected to be used to repay existing debt, the agency said.

The outlook revision reflects improvements in the company's steel processing and pressure cylinders businesses and an expectation that this trend will continue as the U.S. economy slowly recovers and steel demand

improves, S&P said.

The ratings reflect an assessment that the company's satisfactory business profile, characterized by its low-cost steel processing operations and profitable pressure cylinders business, positions the company to benefit as the economy and auto production slowly recover in the coming months, the agency said.

Also supporting the ratings is the company's intermediate financial profile, which benefits from modest debt levels and steady cash dividends from its Worthington Armstrong Venture, S&P added.

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