Fitch rates Ryerson notes B

Fitch Ratings said it assigned a B/RR5 rating to Joseph T. Ryerson & Son Inc.’s new $500 million first-lien secured notes.

“Ryerson Holding Corp.’s (RYI) ratings reflect its significant size and scale, which provides operating leverage, strong working capital management, product diversification, stable operating margins through the cycle, and the counter-cyclical cash-generating ability of its business model. The ratings also reflect solid liquidity, minimal capex requirements and forecast FCF of around $100 million on average, which Fitch expects will be allocated toward a combination of debt reduction and bolt-on acquisitions,” Fitch said in a press release.

The proceeds are expected to be used to refinance the company’s $533 million first-lien secured notes due 2022.

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