S&P affirms Tube City IMS notes, loan

Standard & Poor's said it assigned its B+ corporate credit rating to Tube City IMS Corp., the surviving entity and successor issuer of all rated debt initially issued by TMS International Corp. The outlook is stable.

At the same time, S&P withdrew the B+ corporate rating on TMS International, which has ceased to exist after merging with and into its subsidiary, Tube City IMS Corp.

S&P said it is affirming the B+ issue-level rating on the $400 million senior secured term loan and B- issue-level rating on the $300 million senior unsecured notes to which Tube City IMS has become the successor issuer.

The 3 recovery rating on the term loan remains unchanged, indicating an expectation for a meaningful (50% to 70%) recovery in the event of a payment default. The 6 recovery rating on the senior notes also remains unchanged, indicating an expectation for a negligible (0% to 10%) recovery in the event of a payment default.

This rating action is the result of Tube City's restructuring, which has moved the rated debt from TMS International Corp. to Tube City IMS Corp., the agency said.

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