Moody's ups Standard Steel

Moody's Investors Service said it upgraded Standard Steel, LLC corporate family and probability of default ratings to B3 from Caa1, along with its $140 million of senior secured notes due 2015 to B3 (LGD 4, 54%) from Caa1 (LGD 4, 53%).

The outlook is stable.

The upgrade reflects an expectation of continued improvements in revenues and operating profitability, Moody's said.

Standard Steel is well positioned to benefit from improving industry conditions in the rail car manufacturing business, where continued growth in overall railroad freight volume will likely result in robust demand growth for new railcars, the agency said.

The company's aftermarket business as a percentage of revenues has increased, which will add greater revenue stability, S&P said.

Partially offsetting these positive factors is the cyclicality inherent in the railcar market, the agency said.

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