S&P ups Metals USA

Standard & Poor's said it raised its corporate credit ratings on Metals USA Holdings Corp. and its wholly owned subsidiary, Metals USA Inc., to B from B-.

The outlook is positive.

The agency said it also raised the issue-level rating on Metal USA Inc.'s senior secured notes to B- from CCC and withdrew the CCC rating on Metal USA Holdings' pay-in-kind toggle notes, which the company redeemed on May 14.

In addition, the agency said it revised the recovery rating on Metal USA Inc.'s senior secured notes to a five from a 6.

At the same time, the agency said it removed all ratings from Creditwatch, where the agency had placed them with positive implications on April 7.

"The upgrade reflects its expectation that following the IPO and the redemption of the senior floating-rate toggle notes due 2012 coupled with an improvement in its liquidity position, Metals USA has improved its credit measures to levels commensurate with a higher rating," said credit analyst Maurice Austin.

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