S&P rates CSN notes B+

Standard & Poor's assigned a B+ rating to Companhia Siderurgica Nacional's new $300 million notes due 2008.

Fitch rates BSkyB BBB-

Fitch Ratings assigned a BBB- rating to British Sky Broadcasting Group plc's senior unsecured debt. The outlook is stable.

Fitch said the rating reflects the company's operational strength within U.K. pay television and the increasing stability of its financial profile as it exits the digital investment phase.

For the 12 months to March 2003 net leverage was reduced to 3.2x from 5.6x at the end of fiscal 2002 and is anticipated to remain in the 3.0-3.5x range for fiscal 2003.

Fitch said BSkyB has successfully completed the investment phase of its business plan. Its product is regarded almost as a necessity for many households. BSkyB currently enjoys a 65.9% share of the pay television market with around 6.7 million subscribers.

Fitch said it anticipates that the subscriber base will continue to grow, albeit at a slower rate than that experienced to date, until the market reaches saturation point.

Fitch noted that the interest coverage ratio (EBITDA/net interest) remains low at 1.5x at the third quarter of 2003 compared to 2.0x at the end of fiscal 2002. This is expected to improve in line with an investment grade profile as the benefits of debt reduction flow through.

S&P puts Korea Exchange Bank on positive watch

Standard & Poor's put Korea Exchange Bank on CreditWatch positive including its $200 million 13.75% upper tier II subordinated notes due 2010 rated B.

S&P said the watch placement is because of the increased likelihood that Korea Exchange Bank's capitalization will be strengthened by sales of new stock to a potential buyer.

In an effort to strengthen its capitalization, damaged by large losses from its credit exposure to several failed chaebols over the past few years, Korea Exchange Bank has been negotiating with potential buyers to purchase new shares and part of the government and Commerzbank's stake in the bank. Weak capitalization has been a constraint on Korea Exchange Bank's ratings.

If KEB sold a significant proportion of its stock to a third party, the amount and the quality of the new capital would be an immediate factor affecting the bank's credit ratings, S&P said.

If a new investor also introduced skills in securing diversified revenue sources and improved the bank's credit risk management, the ownership change could have a positive impact on Korea Exchange Bank's ratings over the medium term.

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