S&P cuts Millicom

Standard & Poor's downgraded Millicom International Cellular SA including cutting its corporate credit rating to SD and its $962 million 13.5% senior subordinated discount notes due 2006 to D from C.

S&P said the rating action follows Millicom's recently announced completion of its debt exchange, which Standard & Poor's has deemed to be a distressed transaction.

Under the exchange, Millicom issued cash and notes that collectively represent less than the full face amount of the exchanged debt. Given these factors, this transaction is considered to be tantamount to default under S&P's corporate criteria.

S&P then withdrew the ratings.

S&P cuts WCI Steel, on watch

Standard & Poor's downgraded WCI Steel Inc. including cutting its $300 million 10% senior secured notes due 2004 to CC from CCC+ and put it on CreditWatch negative.

S&P said the action follows WCI Steel's announcement that it is proceeding with a restructuring of its debt and does not expect to make its scheduled June 1 $15 million interest payment on its 10% senior secured notes due 2004.

The notes will be lowered to D after the payment is missed.

The prolonged downturn in the steel industry over the past couple of years combined with significant increases in energy and raw material costs have caused WCI to incur substantial losses, S&P said. In addition, cash outlays required for its pension plan and working capital continues to adversely affect WCI's liquidity and capital resources.

Moody's cuts Newmont Yandal

Moody's Investors Service downgraded Newmont Yandal Operations Ltd.'s senior unsecured debt to Caa1 from Ba2. The outlook is negative.

Moody's said the downgrade reflects the challenges facing Yandal in meeting its debt obligations in light of the company's reducing gold production profile, increasing cost base and limited proven reserve position in light of duration of debt obligations.

The rating also considers the high leverage at Yandal in light of the foregoing issues and the termination rights of hedge counterparties, on specific dates, prior to the maturity date of hedge contracts.

Contracts with right to break options cover 2.4 million ounces of gold between June 2004 and August 2005.

Yandal's hedge book had a negative mark to market position of approximately $169 million at March 31, 2003, a reduction from the year-end position of roughly negative $288 million. The mark to market position under these contracts will fluctuate with movements in the price of gold and the A$/US$ exchange rate, with movements in the exchange rate having a greater impact on the overall position.

The negative outlook reflects Moody's anticipation of ongoing contraction in earnings and cash flow given Yandal's reducing business base and resultant pressure on liquidity.

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