S&P: Allegheny Technologies on positive watch

Standard & Poor's said it placed its ratings, including its BB corporate credit rating, on Allegheny Technologies Inc. on CreditWatch with positive implications, reflecting the company's improved business and financial profile, currently robust industry conditions, particularly strong end-user demand from the company's aerospace customers and debt reduction.

Through healthy product pricing coupled with the ability to pass through spiking raw material prices, Allegheny has been able to internally fund its capital expenditures, generate significant cash balances, improve its credit metrics and somewhat shift its product mix away from commodity sheet products, the agency said.

S&P added that although a majority of its revenues are derived from its highly cyclical, flat-rolled stainless steel products segment, earnings have been driven by its specialty alloy business, which primarily serves the aerospace, defense, electric power generation and medical markets.

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