S&P gives Edgen notes CCC+

Standard & Poor's said it assigned its CCC+ senior secured rating to Edgen Corp.'s proposed $30.9 million senior secured notes due 2011.

S&P said it also affirmed its B- corporate credit rating and its B- senior secured rating on Edgen's $105 million senior secured notes due 2011. The outlook is stable.

S&P added the ratings on Edgen reflect its vulnerable niche position in the highly cyclical, competitive and volatile specialty steel pipe industry, limited scope of operations, poor inventory turnover and very aggressive debt leverage.

These negatives greatly overshadow successful operating restructuring efforts to improve the cost profile and favorable end-market fundamentals, the agency noted.

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