Moody's may lower McJunkin

Moody's Investors Service said it placed the ratings of McJunkin Corp. under review for downgrade following the announcement that it intends to merge with Red Man Pipe & Supply Co. The review reflects the likelihood of increased total debt after the deal.

McJunkin has corporate family and probability-of-default ratings of B1, $300 million senior secured revolving credit facility due 2012 rated Ba1 and $575 million senior secured term loan due 2014 rated B2.

Moody's said the review would assess the merged companies' capital structure along with its strategic and cost benefits.

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