Moody's withdraws ratings for Industrial Union of Donbass.

Moscow, April 09, 2009 -- Moody's Investors Service today has withdrawn the B1 corporate family rating of Industrial Union of Donbass ("ISD"). The rating is withdrawn upon the company's request, which qualifies under Moody's Guidelines for the Withdrawal of Ratings in situations associated with "Business Reasons". Please refer to Moody's Withdrawal Policy on moodys.com. Withdrawal: ..Issuer: Industrial Union of Donbass ....Corporate Family Rating, Withdrawn, previously rated B1 The last rating action was on January 30, 2009 when Moody's confirmed the existing B1 rating of ISD and assigned a negative outlook. The negative outlook reflected the effects of the weaknesses in the industry, the low visibility for prospects of short term recovery and the current limitations for Ukrainian companies to receive long-term funding from their banks. The principal methodology used in rating ISD was Global Steel Industry, October 2005 (94683), which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating ISD can also be found in the Credit Policy & Methodologies directory. Industrial Union of Donbass ("ISD") is one of the leading steel producers in Eastern Europe and is one the largest in Ukraine with an annual production of 10.1 million tones of liquid steel in 2007. The company's production assets are located in four sites, with two mills in the Ukraine and one each in Hungary and Poland. Through its JV with Duferco, the company also has equity interests in Danish Steel in Denmark, MakStil in Macedonia and supplies slabs to Farrell in the US. ISD is primarily exporting its products (85% of 2007 revenues) with the main export markets being Europe (45% of total sales) following by sales to South-East Asia (20% of the sales). The company is ultimately owned and controlled by several Ukrainian individuals and their families. In 2007 the company reported revenue of USD 6.15 billion and USD 1.3 billion of EBITDA based on audited consolidated financial statements.

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