S&P upgrades Tube City

Standard & Poor's said it raised the corporate credit rating on Tube City IMS Corp. to BB- from B+, along with the rating on its senior secured notes to BB from B+.

The recovery rating was revised to 2 from 3, indicating 70% to 90% expected recovery in a default.

The agency also said it raised the rating on its subordinated debt to B from B-.

The recovery rating remains at 6, indicating 0% to 10% expected recovery in a default.

The outlook is stable.

S&P also said it removed all of the ratings from CreditWatch, where they were placed with positive implications in September.

The upgrade reflects Tube City's good operating performance thus far in 2011, the agency said, and an expectation that this improvement could be sustained in 2012 due to better steel industry operating fundamentals and higher capacity utilization rates.

The ratings also consider the company's financial risk profile as significant, according to the agency's criteria.

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