Moody's gives AK Steel notes Ba3

Moody's Investors Service said it assigned a provisional Ba3 rating for senior unsecured debt to AK Steel Corp.'s well known seasoned issuer shelf registration and, at the same time, Moody's assigned a Ba3 rating to AK Steel's $400 million note issue due 2020.

The notes are guaranteed by AK Holding Corp.

According to the agency, proceeds, together with cash on hand, will be used to tender for the 7¾% notes due 2012 and for general corporate purposes.

The outlook is stable.

AK Steel's Ba2 corporate family rating is supported by its business mix, which continues to be weighted to contract positions, and its strong liquidity position, the agency noted.

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