S&P cuts WHX ratings

Standard & Poor's said it lowered its corporate credit rating on WHX Corp. to CCC+ from B- and its unsecured debt rating to CCC- from CCC.

The outlook is negative.

S&P said the downgrade reflects S&P's concerns regarding WHX's ability to access capital markets to refinance $92.8 million outstanding on its 10.5% senior unsecured notes due April 15, 2005. The notes' low rating will more than likely deter investor interest.

Indeed, WHX recently warned that its access to capital markets may be limited and that its status as a going concern would be in doubt if it were unable to refinance the debt. Although WHX has used asset sales proceeds to meaningfully reduce its debt over the past couple of years, the ability to further reduce these notes is limited.

S&P said ratings on WHX reflect its weak financial and operating performance, high debt leverage and limited liquidity.

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