More Metals Related Bankruptcies

January 26, 2010 - - In the previous issues of Metal’s Edge we noted the number of metals related bankruptcies due to a number of factors including ongoing tight credit markets and low levels of manufacturing activity. The economy remains fragile in its slow recovery mode as shown by the number of bankruptcies over the prior months.

Credit Risk Remains High Into 2010

January 26, 2010 - - Flipping the calendar doesn’t mean anything. As long as there are certain economic conditions, there is a substantial risk of business insolvency. Credit markets remain tight, unemployment is still high, and bankruptcies continue to rise.

Standard & Poor’s Releases its Outlook on the Capital Goods Sector

January 26, 2010 - - On December 23, 2009, S&P reported: The outlook for credit quality in the capital goods sector remains generally negative heading into 2010. However, the pace of downgrades has slowed down significantly in recent months, and there have been some positive rating actions, indicating that the momentum has slowly but surely started to reverse. This reflects underlying fundamentals for the sector that are now increasingly mixed, compared with mostly negative ones only a few quarters ago, as well as receding stress on issuers' balance sheets and liquidity positions.

ProfitGuard Upgrades Novelis Corp.’s Credit Scores

January 26, 2010 - - On December 1, 2009, ProfitGuard reviewed Novelis Corp.’s most recent results and its end markets. PG felt a slight adjustment was warranted to reflect the company’s results and current industry fundamentals.

S&P Confirms Credit Rating on Steel Dynamics, Inc.

January 26, 2010 - - On December 30, 2009, S&P confirmed credit rating on Fort Wayne, Ind.-based Steel Dynamics Inc. at BB+/Negative/-- which reflects the company's exposure to highly competitive and cyclical markets; aggressive growth plans that include significant capital expenditures and acquisitions; and, until the current downturn, shareholder-friendly initiatives. The rating also reflects the company's relatively high debt burden, modest size relative to competitors, and the currently very weak steel markets. Still, the company benefits from a very low cost position, flexible operations and cost structure, and improved product diversity.

ProfitGuard Completed a Committee Review of TMK IPSCO

January 19, 2010 - - On December 11, 2009, ProfitGuard reviewed TMK IPSCO and their end markets. The company manufactures carbon and alloyed seamless and welded pipe products.