S&P rates Steel Dynamics notes BB+

Standard & Poor's said it assigned its BB+ rating and 3 recovery rating to the proposed $300 million senior unsecured notes due 2016 of Steel Dynamics Inc. (BB+/stable).

Proceeds will be used to reduce amounts outstanding under the company's revolving credit facility and for general corporate purposes, including capital expenditures, acquisitions or share repurchases.

Ratings reflect the company's exposure to highly competitive and cyclical markets, aggressive growth plans and shareholder-friendly initiatives, the agency said. They also reflect its increased debt burden and somewhat modest size, S&P added.

Ratings further reflect a low cost position, solid credit protection measures, improved product diversity, conservative balance sheet and good industry conditions, the agency noted.

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