Fitch cuts Sidetur

Fitch Ratings said it downgraded the foreign- and local-currency issuer default ratings of Siderurgica del Turbio SA to B- from B+ and national-scale ratings to BB+(ven) from A+(ven). Fitch has also downgraded Sidetur's $100 million of 10% senior notes due 2016 issued through its subsidiary Sidetur Finance BV to B-/RR4 from B+/RR4.

The Rating Watch negative was removed and the outlook is negative.

The downgrades reflect the ongoing developments and uncertainty surrounding the expropriation of Sidetur's steel mills and in particular the unknown dollar value that it will receive from the Venezuelan government for those assets, the agency said.

The downgrades also take into consideration the uncertainty surrounding the timeliness of payment from the government, which could inadvertently lead to the change of control clause being triggered, the agency added.

The negative outlook reflects the slow and uncertain process for the resolution of the issues, Fitch said.

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