Fitch gives Commercial Metals notes BB+

Fitch said it rated Commercial Metals Co.’s new $300 million of senior unsecured notes BB+/RR4.

“The rating reflects CMC's low-cost position and the flexible operating structure of its electric arc furnace (EAF) steel production. CMC benefits from exposure to strong construction demand regions within the U.S. and the European Union, which provides geographical diversification. The rating also reflects Fitch's expectation total debt/EBITDA, below 1.5x in fiscal 2021, will generally remain at or below 2x barring any additional acquisitions,” the agency said in a press release.

CMC will use the proceeds for general corporate purposes.

The outlook is stable.

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