Moody’s ups Ryerson, notes; rates notes Caa1

Moody's Investors Service said it upgraded Ryerson Inc.’s corporate family rating to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD, senior secured note rating to Caa1 from Caa2 and senior unsecured note rating to Caa2 from Caa3.

At the same time, the agency assigned a Caa1 rating to Ryerson's proposed $650 million senior secured notes.

The outlook is stable.

Moody’s said the upgrades reflect the substantial improvement in Ryerson's credit profile over the past 15 months and the expectation the positive trend will continue in the near-term. It also assumes the company is able to complete its proposed senior secured note offering and push out its near term debt maturities.

Proceeds from the new senior secured notes will be used to redeem the company's existing $570 million senior secured notes due 2017 and to redeem the majority of the $145 million senior unsecured notes due 2018.

The ratings on Ryerson's existing senior secured notes will be withdrawn when the refinancing is completed.

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