S&P ups Oregon Steel Mills notes to B+

Standard & Poor's said it raised its corporate credit and $305 million first-mortgage notes ratings on Oregon Steel Mills Inc. to B+ from B. The outlook is stable.

S&P said the upgrade of Oregon Steel reflects the expectation that the company will generate meaningful levels of cash over the next year because of continued favorable fundamentals in its plate, rail and pipe markets, depletion of its high inventory levels and the sale of its Napa, Calif., pipe mill assets and apply its cash balances toward buying back a meaningful portion of its bonds, which become callable July 2006.

Subsequently, S&P said Oregon Steel is expected to continue to operate the company with a more moderate capital structure.

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