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HOME :: RESEARCH :: DEBT :: NEWS:: JUL 2007

Ryerson ratings on negative watch on plan for purchase by Platinum Equity - S&P


Standard & Poor's (NYSE:MHP) Ratings Services said it has placed its ratings on Ryerson Inc (NYSE:RYI) on negative watch after the announcement that the metals processor and distributor has entered into a definitive merger agreement in which private equity firm Platinum Equity will acquire Ryerson for 2 bln usd.

The ratings agency said the proposed leveraged buyout, or other leveraging transaction, may significantly increase the debt burden and materially weaken Ryerson's key credit measures, and said it expects to lower the credit rating by at least one notch.

S&P has a 'B+' corporate credit rating and a 'B-' senior unsecured debt rating on Ryerson.

read entire article on CNN money

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