Moody's cuts G Steel view to negative

Moody's Investors Service said it confirmed G Steel's B3 corporate family and bond ratings.

The outlook was changed to negative from stable.

The confirmation concludes the review for possible downgrade that began in November 2007, following protracted negotiations over the company's refinancing of a $120 million bridge loan that matured Oct. 31, 2007.

The confirmation reflects G Steel's improved performance over the last two quarters and the reduction in the extent of its short-term liquidity risk, given its repayment of $20 million and its successful terming out of the bridge loan to a 30-month amortizing loan due in 2010, Moody's said.

But, the hefty size of the semi-annual repayments and increased pricing of the amortizing loan have raised the company's overall interest burden and constrained its liquidity, the agency added.

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