Russian OJSC Novolipetsk Steel Ratings Unchanged By Purchase Of 50% In Duferco Joint Venture
November 30, 2006
MOSCOW (Standard & Poor's) Nov. 30, 2006--Standard & Poor's Ratings Services said today that its ratings and outlook on Russian steelmaker OJSC Novolipetsk Steel (NLMK; BB+/Stable/--; Russia national scale 'ruAA+') are unchanged by the announcement of NLMK's acquisition of a 50% share in a joint venture with Duferco Group (not rated) for $850 million. This cash outflow will not deteriorate NLMK's strong financial metrics, which have sufficient flexibility for M&A and investments. In the longer term, the business profile could benefit from NLMK's sale to the joint venture of excess output of semifinished products for processing into higher-value-added products.
Company — Svobodny Sokol
Full nameOpen Joint Stock Company Svobodny Sokol