S&P lifts McJunkin Red

Standard & Poor's said it raised its corporate credit rating on McJunkin Red Man Corp. to B+ from B. The outlook is stable.

The agency said it also raised the issue-level rating on the senior secured notes to B from B-. The recovery rating remains at 5, indicating an expectation of a modest recovery in a default scenario.

At the same time, the agency said it removed the ratings from CreditWatch, where they were placed with positive implications on April 12.

"The upgrade reflects our view that McJunkin's credit metrics are more in line with a higher rating after it paid down about $334 million in debt with proceeds from the IPO of its parent company, MRC Global Inc.," said S&P credit analyst Gayle Bowerman in a news release.

S&P said the upgrade also conveys the perspective that the company's operating performance should continue to improve as tweaks to product mix and attentive inventory management propel gradual margin expansions.

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