Moody's rates Schmolz + Bickenbach notes B1

Moody's Investors Service said it assigned a provisional B1 rating to the proposed €300 million of senior secured notes due 2019 being issued by Schmolz + Bickenbach Luxembourg SA, a wholly owned subsidiary of Schmolz + Bickenbach AG.

At the same time, Moody's assigned a provisional B1 corporate family rating and probability of default rating.

The outlook is stable.

Moody's said the provisional B1 rating reflects the competitive nature of the specialty steel industry, the cyclical nature of the primary end markets Schmolz + Bickenbach serves and the few costs the company has under its control given that approximately 60% of its costs are raw material and energy costs.

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