S&P's AK Steel ratings unaffected

Standard & Poor's said its ratings and outlook on AK Steel Corp. (B+/stable/B-2) were not immediately affected by the announcement by the company that it has locked out its union workers at its Middletown Works plant in Middletown, Ohio after its contract with the independent union there expired. The contract covers about 2,700 hourly production and maintenance employees. AK Steel has implemented a contingency plan and will operate the facility with salaried employees and temporary replacement personnel.

Ratings on the company could soon come under pressure if negotiations with its unions remain at an impasse and a lockout or work stoppage is prolonged, the agency said. The Middletown Works facility is a significant contributor to the company's production and financial performance.

Fitch said AK Steel's liquidity as of Dec. 31 was fair, with $519.6 million in cash and $510 million in availability under its revolving credit facilities, and provides some additional flexibility as the company attempts to resolve this issue.

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