S&P puts Barzel on watch

Standard & Poor's said it placed Barzel Industries Inc.'s (formerly Novamerican Steel Inc.) B long-term corporate credit and B- secured debt ratings on CreditWatch with negative implications.

"We base the CreditWatch placement on our opinion that steel service center Barzel's operating performance is weakening along with the sharp deterioration in steel market conditions in North America," S&P analyst Donald Marleau said in a statement.

"Furthermore, the continuation of poor profitability and cash flow in first-half 2009 could pressure what we view as the company's adequate liquidity," Marleau added.

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