Commercial Metals Co.'s Proposed $300 Million Senior Unsecured Notes Rated 'BB+'

NEW YORK (S&P Global Ratings) June 27, 2017--S&P Global Ratings today assigned its 'BB+' issue-level rating to Commercial Metals Co.'s proposed $300 million senior unsecured notes due 2027. The recovery rating of '3', indicating our expectation for meaningful (50% to 70%; rounded estimate of 65%) recovery in the event of payment default, is unchanged. We expect the company will use proceeds to repay debt and for general corporate purposes. Our 'BB+' corporate credit rating and stable outlook on Commercial Metals Co. are unchanged. This reflects our expectation that the company will maintain debt to EBITDA between 2x and 3x and funds from operations to debt of about 30% through the end of 2017 and into 2018. Our ratings consider Commercial

...NEW YORK (S&P Global Ratings) June 27, 2017--S&P Global Ratings today assigned its '##+' issue-level rating to Commercial Metals Co.'s proposed $300 million senior unsecured notes due 2027. The recovery rating of '3', indicating our expectation for meaningful (50% to 70%; rounded estimate of 65%) recovery in the event of payment default, is unchanged. We expect the company will use proceeds to repay debt and for general corporate purposes. Our '##+' corporate credit rating and stable outlook on Commercial Metals Co. are unchanged. This reflects our expectation that the company will maintain debt to EBITDA between 2x and 3x and funds from operations to debt of about 30% through the end of 2017 and into 2018. Our ratings consider Commercial Metals' stable credit ratios and operating performance. We also factor in the company's susceptibility to lower profitability during downturns driven by its participation in the highly cyclical steel industry and exacerbated by it not being a value-added...

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