S&P cuts Erdemir

Standard & Poor's said it lowered its long-term corporate credit rating on Eregli Demir ve Celik Fabrikalari TAS (Erdemir) to B- from B.

The outlook is stable.

The downgrade reflects a view that Erdemir faces high leverage and ongoing refinancing risks stemming from material short-term debt maturities falling due in 2010 and 2011, S&P said.

The agency also said it believes that Erdemir has good access to bank financing, notably on the domestic market, as evidenced by successful refinancing of 900 million in Turkish lira and $550 million in 2009, S&P said.

The agency also said it takes comfort in the ability and willingness of controlling shareholder Ordu Yardimlasma Kurumu to provide short-term financing on a commercial basis, as demonstrated in the past.

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