S&P may cut Standard Steel

Standard & Poor's said it placed Standard Steel LLC's ratings on CreditWatch with negative implications.

The issuer has a corporate credit rating of B+, $20 million revolving credit facility of BB-, $120 million term loan of BB- and $25 million second-lien term loan of B.

The watch reflects the company's weakening credit metrics, which could make it difficult for the company to achieve its financial covenants, S&P said.

The company's financial risk profile deteriorated in 2007 and the company ended the year with total debt-to-EBITDA ratio of about 6.3 times from 5.1 times a year earlier.

Concerns also include high capital spending in 2007, slowing orders for freight cars, high commodity costs and the possibility of a more competitive operating environment, the agency said.

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