S&P rates Pipe bond CCC+

Standard & Poor's said it assigned a B- long-term corporate credit rating to Pipe Acquisition Ltd. and related entity Murray International Metals Ltd and a CCC+ senior secured debt rating to Pipe's proposed senior secured bond issue.

The outlook on both entities is stable.

Pipe will use the proceeds to acquire 100% of Murray International, sister company of Edgen Corp. (B-/stable).

The ratings reflect the group's vulnerability, owing to its relatively small scale, high dependence on the cyclical oil and gas industry upstream and the competitive steel industry downstream, its limited scope of operations, variable pipeline of projects and high leverage, the agency said.

In the near term, these negative factors outweigh Murray International's successful track record and proven expertise in offshore projects, good geographical diversification, low fixed costs and minimal capital expenditure requirements.

© 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.