Moody's rates Steel Dynamics notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Steel Dynamics Corp.'s proposed offering of $300 million of senior unsecured guaranteed notes due 2020 and affirmed the company's Ba1 corporate family rating and probability of default rating, along with the Ba2 rating on its other senior unsecured guaranteed notes.

The outlook was changed to stable from negative.

Net proceeds from the offering are expected to fund the repayment of outstanding amounts under the company's senior secured revolving credit facility and for general corporate purposes.

The rating considers the company's low cost mini-mill operating structure and its diversified product mix, which has shifted in recent years toward higher value-added steel and specialty alloys, Moody's said.

The rating also acknowledges the sequential improvement in earnings, beginning in the second half of 2009, as the company's steel mill and ferrous recycling utilization rates increased, the agency said.

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