S&P: Siderurgica Nacional on watch

Standard & Poor's said it placed its BB corporate credit rating on Companhia Siderurgica Nacional on CreditWatch with negative implications.

The agency said that this rating action follows the announcement that the company has approached the board of directors of Corus Group plc (BB/Watch developing/B) regarding a proposal to acquire Corus at a price of 475 pence per ordinary share in cash.

Siderurgica Nacional affirms that any potential offer is subject to certain pre-conditions, all of which CSN reserves the right to waive, including completion of confirmatory due diligence satisfactory to the company, finalization of financing arrangements and a recommendation from Corus's board, the agency added.

Although the approach is still preliminary and the ultimate financing structure for the potential acquisition has not been defined yet, the agency said it believes the impact of the transaction on Siderurgica Nacional's financial profile would be significant if the transaction is successfully completed.

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