S&P: Evraz Group unchanged

Standard & Poor's said its ratings and outlook on Evraz Group SA (BB-/stable) are unaffected by the group's announced acquisition of Highveld Vanadium and Steel Corp. from Anglo American plc (A/stable/A-1).

The ratings had some headroom for acquisitions and S&P noted that the transaction will improve the group's geographical diversification and strategic positions in vanadium.

Despite the significant size of the acquisition at $678 million for a 79% stake, the agency said it believes that Evraz will stick to its target of total debt to EBITDA below 1.5 times, reflecting expected high profitability in 2006 as well as substantial cash balances and short-term financial assets.

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