Moody's: Aperam Ba2, bonds B1

Moody's Investors Service said it assigned definitive Ba2 corporate family and probability of default ratings to Aperam SA.

The agency also said it assigned a definitive B1 (LGD 6) rating to the company's $500 million worth of senior unsecured bonds, sold in two tranches of $250 million with maturities of five and seven years.

The outlook is stable.

The ratings are driven by the company's market-leading positions in Europe and Brazil, Moody's said, and an extensive distribution network in flat stainless steel products.

The ratings also reflect its initially moderate leverage, rising to an estimated 3.1x in 2010 after a sluggish second half, the agency said.

These positive drivers are partially offset by its initially high dependency on the profit contribution of one country and the high volatility of input prices, which can lead to significant margin fluctuations, Moody's added.

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