S&P rates Edgen notes B-

Standard & Poor's said it assigned its B- corporate credit rating to Edgen Corp. At the same time, S&P assigned its B- senior secured rating to Edgen's proposed $105 million senior secured notes due 2011. The outlook is stable.

Proceeds from the proposed note offering, combined with $24 million of equity from private equity investment firm Jefferies Capital Partners and management, will be used to purchase the company from Harvest Partners Inc. and to pay about $5 million in fees.

S&P said 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.

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