S&P: Novolipetsk Steel unchanged

Standard & Poor’s said that news of OJSC Novolipetsk Steel's possible acquisition of a controlling stake in Maxi Group (not rated) does not have an immediate effect on the ratings and outlook on Novolipetsk Steel (global-scale BB+/stable, Russia national-scale ruAA+).

The amount and terms of the deal have yet to be determined, but Novolipetsk Steel has considerable headroom for acquisitions at the current rating level due to its low leverage and strong cash flow generation capacity, the agency said.

In its press release, Novolipetsk Steel stated that it will make a final decision on the deal by year-end 2007 and S&P said it will monitor the progression of discussions between the two companies, as well as the amount and financing structure of the deal.

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