...NEW YORK (Standard & Poor's) July 27, 2015--Standard & Poor's Ratings Services said today that its ratings on Irving, Texas-based Commercial Metals Co. are unaffected by the company's announcement that it is expanding its manufacturing footprint by building a new mill (expected to be operational in fall 2017) in Durant, Okla. We believe the investment is in line with the company's business strategy and complements its asset mix. Although the project has a long lead time, we believe that when the mill becomes operational the company's credit ratios may benefit slightly from the incremental EBITDA generation. According to Commercial Metals, the new mill construction will be funded with cash on the balance sheet, internally generated cash flow from operations, and expected proceeds from asset sales. We expect the company's credit ratios will remain in the "significant" financial risk category, with funds from operations to debt averaging between 20% and 30% and EBITDA interest coverage in...
