S&P says Steel Dynamics unchanged

Standard & Poor's said Steel Dynamic Inc.'s ratings are unchanged including its corporate credit at BB- with a stable outlook in response to the announcement of higher earnings in the first quarter of 2003.

Although the company's credit measures are currently strong for the ratings, the outlook for the U.S. steel industry looks increasingly challenging for 2003, S&P said.

Weakened demand, mainly due to a falloff in exports to China and sluggish economic conditions in the U.S., and excess supply from restarted capacity have recently caused shipment levels and selling prices to decline.

These factors together with higher scrap and natural gas costs will put pressure on the company's margins during 2003, S&P said. Also, uncertainties remain as to the continued successful ramp-up of its new structural mill.

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