S&P puts McJunkin Red Man on positive watch

Standard & Poor's said it placed McJunkin Red Man Corp.'s B corporate credit rating on CreditWatch with positive implications.

The positive watch placement reflects an expectation that the initial public offering of McJunkin Red Man Corp.'s parent, MRC Global Inc., will reduce its total debt if proceeds are used as indicated to repay about $350 million in borrowings on the company's asset-backed revolving credit facility, S&P said.

The agency also said it expects McJunkin's operating performance will continue to improve in 2012 as market demand strengthens for its pipes, valves and fittings.

The company operates in a highly fragmented and competitive industry with cyclical end markets and volatile steel prices, S&P added.

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