Good market positions in a consolidated industry; and Some benefits from vertical integration. Aggressive financial risk profile; Cyclical end markets; and Significant customer concentration. The ratings on Burnham, Pa.-based Standard Steel LLC reflect our assessment that the company's credit quality will benefit from ownership by much larger entities, Sumitomo Metal Industries (the majority owner; unrated) and Sumitomo Corp. The rating also reflects Standard & Poor's Rating Services' uncertainty regarding the level of support that the company can expect from its new owners, as well as our limited ability to assess the credit quality of the unrated majority owner. Standard Steel manufactures wheels and axels for railcar manufacturers, Class 1 railroads, and aftermarket maintenance providers. With annual sales of roughly $200...
Companies mentioned in this report are:
- Standard Steel LLC
- Trinity Industries Inc.
- Amsted Industries Inc.
- Sumitomo Corp.
- American Railcar Industries Inc.
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Research Type: Full Analysis