S&P upgrades Steel Dynamics

Standard & Poor's said it raised its corporate credit rating on Steel Dynamics Inc. to BB from BB-. At the same time, S&P raised its unsecured debt rating to BB from B+ and the subordinated debt rating to B+ from B.

The outlook is stable.

S&P said the upgrade on Steel Dynamics reflects the company's strong financial performance, improved balance sheet and the expectation that steel markets will remain relatively strong in 2005. The company has enhanced its cash flow prospects with its continued success in expanding into more value-added steel production and downstream operations.

The ratings on Steel Dynamics reflect its exposure to highly competitive and cyclical end markets and its aggressive growth initiatives, partially offset by its very low cost position, successful efforts in diversifying its product lines, and its strong credit measures, the agency said.

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