Moody's affirms Standard Steel

Moody's Investors Service said it affirmed the B2 corporate family and probability of default rating of Standard Steel, LLC.

The outlook is stable.

The agency said that the affirmation reflects the high proportion of Standard Steel's 2008 production capacity output that is covered under take-or-pay contracts and pending purchase orders, which should enable the company to generate credit metrics in line with the current rating level.

Moody's noted that the ratings consider the company's practice of selling forward much of its manufacturing capacity, the highly consolidated industry structure for suppliers of rail wheels and axles, the company's ability to manufacture forged wheels and the high cost of constructing new capacity which acts as somewhat of an entry barrier.

© 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.