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Research Update: DBO Holdings Inc. Ratings Placed On CreditWatch Negative On Risk Of Covenant Breach Apr 10 Product Image

Research Update: DBO Holdings Inc. Ratings Placed On CreditWatch Negative On Risk Of Covenant Breach Apr 10

  • Published: April 2010
  • Standard & Poors

Abstract
Because of the significant increase in steel prices, it is our assessment that U.S.-based tubular products manufacturer DBO Holdings' LIFO earnings will likely be weaker than previously expected. The risk of a potential covenant breach of the company's net leverage covenant governing its bank credit facility, which utilizes LIFO EBITDA in its calculation, has increased. We are placing our ratings on DBO, including its 'B' corporate credit rating, on CreditWatch with negative implications. On April 15, 2010, Standard & Poor's Ratings Services placed its ratings, including its 'B' corporate credit rating, on Beachwood, Ohio-based tubular products manufacturer DBO Holdings Inc. on CreditWatch with negative implications. The CreditWatch listing reflects our assessment that DBO Holdings' LIFO EBITDA, which is utilized for...

Companies mentioned in this report are: JMC Steel Group Inc.,JMC Steel Group
Action: On CreditWatch:Negative

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JMC Steel Group Inc.,JMC Steel Group

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