S&P changes Zekelman to positive

S&P said it revised its outlook on Zekelman Industries Inc. to positive from stable.

At the same time, the agency affirmed the B+ corporate credit rating on the company.

In addition, S&P affirmed the BB- issue-level rating on the company's $925 million senior secured term loan due 2021 and the B issue-level rating on its $375 million second-lien senior secured notes due 2023.

The recovery ratings are 2 and 5, respectively. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default, and the 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 10%) recovery.

The agency said the revision reflects a view that Zekelman's operating results and profitability will continue to improve over the next 12 months, on the back of robust steel market conditions in North America in particular, and continued strong demand in its primary end markets, nonresidential construction and infrastructure.

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