S&P: Noranda on positive watch

Standard & Poor's said it placed its B- corporate credit rating and issue ratings on Noranda Aluminum Holding Corp. and its subsidiary, Noranda Aluminum Acquisition Corp., on Creditwatch with positive implications.

"The Creditwatch action reflects its view that Noranda's credit profile could improve following its announced plan to raise new capital via an IPO with the proceeds utilized to reduce outstanding debt," said credit analyst Sherwin Brandford.

According to the agency, the company plans to sell about 16.7 million shares of common stock, with the intention to use the net proceeds, which are expected to exceed $200 million, in combination with about $90 million in funds received from monetizing all its outstanding fixed-price aluminum hedges, cash on hand, and revolving credit facility borrowings to repurchase its holding company notes.

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