Moody's upgrades Schuff

Moody's Investors Service said it upgraded Schuff International Inc.'s corporate family and senior note ratings to B3 from Caa1 after the company's 2005 financial results showed strong improvement in the debt leverage metrics and operating performance.

The outlook was changed to stable from developing after the termination of the tender offer from Witherspoon Acquisition Corp.

Moody's said the key factors influencing Schuff's ratings are the relatively high volatility of the company's historical operating performance, the concentration of the company's existing business contracts in a fairly small number of large projects and the lack of geographical diversification. In addition, there is an increased level of uncertainty regarding the company's future capital structure since the proposed Witherspoon acquisition has proven to be unsuccessful.

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