S&P takes Essar off watch

Standard & Poor's said it removed the ratings on Essar Steel Algoma Inc. from CreditWatch where they were placed with negative implications Nov. 24, 2010. S&P affirmed the ratings on Essar, including the B- long-term corporate credit rating on the company.

The outlook is negative.

The affirmation and removal from CreditWatch reflect the company's improving operating margins due to stronger average net sales realization on steel sale prices and lower iron ore input costs, as well as resolution of Essar's iron ore supply pricing dispute, the agency said.

The ratings reflect the company's limited operating diversity, exposure to volatile end markets and its large debt burden as well as the company's good cost profile, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.