Standard&Poor’s lowered credit ratings of Oregon Steel
Portland based US mill Oregon Steel's corporate credit ratings have been downgraded by the rating agency Standard & Poor's. After such decision, Oregon Steel's rating has been lowered to B plus from BB minus. The current outlook is stable.
Orgegon Steel currently has around $305 million in total debt. S&P officials comment that such downgrading is effected due to the weaker than expected operating environment in Oregon Steel's key markets as a shift to lower product mix, higher natural gas and
scrap costs will result in weaker financial performance.
Standard & Poor's said that its ratings reflect Oregon Steel's fair market position, aggressive capital structure, and volatile operating performance that is the result of exposure to cyclical industries, particularly the oil and gas transmission pipeline business. Oregon Steel is affected by intense competition, cyclical swings in demand, and fluctuations in the price of energy as well as steel
scrap and
slab, which are critical raw materials
The company primarily competes in markets west of the Mississippi River and in Western
Canada, where there are few competitors, providing a transportation cost advantage relative to East Coast producers.