S&P: Oregon Steel stable

Standard & Poor's said it revised its outlook on Oregon Steel Mills Inc. to stable from negative and affirmed its ratings on the company.

Ratings affirmed include Oregon Steel Mills' corporate credit rating at B, $65 million senior secured credit facility due June 30, 2005 at B+, and $305 million first mortgage notes due 2009 at B.

The outlook revision reflects the improvement to the company's financial profile due to the strong and rapid rebound in the steel industry, the agency said.

S&P said the ratings on Oregon Steel Mills reflect its highly competitive markets, volatile operating performance resulting from exposure to cyclical industries, particularly the oil and gas transmission pipeline business, and its aggressive capital structure.

Oregon Steel has a very aggressive balance sheet highlighted by a total-debt (adjusted for operating leases)-to-EBITDA ratio of 9.5x for the 12 months ended March 31 and a total-debt-to-total-capital ratio of 59%.

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