Moody's may upgrade Mittal Steel USA 6½% bond

Moody's Investors Service said Mittal Steel Co. NV filed an offer with the Securities and Exchange Commission to provide an unconditional guarantee for the $500 million 6½% bond due 2014 issued by Mittal Steel USA Inc.

If the offer were accepted and such a guarantee materialized, the agency said it would align the Ba1 rating of the bond to the Baa3 level of Mittal Steel Co. NV because the guarantee would transfer the risk associated with the bonds to the level of the much wider diversified Mittal group and would therefore have the same characteristics as debt issued at the parent level.

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