Moody’s gives Zekelman loan Ba3

Moody’s Investors Service said it upgraded Zekelman Industries, Inc.’s corporate family rating to Ba3 from B1, its probability of default rating to Ba3-PD from B1-PD, its senior secured notes rating to B2 from B3 and assigned a Ba3 rating to the proposed $900 million senior secured term loan.

Zekelman plans to use the proceeds to pay off its term loan due in June 2021. The B1 rating on the senior secured term loan will be withdrawn when it is redeemed. The outlook is stable.

“The upgrade reflects the significant improvement in the company’s operating performance and credit metrics over the past two fiscal years and the expectation they will improve further in the near term. It also reflects the sustainability of its operating performance at a higher level than the past due to its strengthened competitive position after the consolidation of the tubular products sector,” said Michael Corelli, a Moody’s vice president, senior credit officer and lead analyst for Zekelman, in a press release.

The outlook is stable.

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