Moody's rates Algoma Steel loan B3

Moody's Investors Service said it assigned ratings to Algoma Steel Inc. following its plan to emerge from bankruptcy.

Moody's assigned a B3 corporate family rating, B3-PD probability of default rating and B3 rating on its proposed $300 million senior secured term loan.

The outlook is stable.

The proceeds from the term loan will be used as part of the financing arrangement in Algoma's exit from Companies' Creditors Arrangement Act (CCAA) protection, which it entered into in November 2015, the agency said.

The ratings are constrained by the company's small size, single production site, cash flow volatility due to exposure to the volatile steel market and its higher capital spending for strategic investment, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.