Moody's may upgrade SUAL

Moody's Investors Service said it placed SUAL International Ltd.'s Ba3 corporate family rating and Aa3.ru national scale corporate family rating under review for possible upgrade following the group's joint announcement with Russian aluminum producer Rusal and Glencore International AG of a three-way merger of the respective aluminum assets.

The merger is expected to be concluded by April 1 and the newly formed United Company Rusal is expected to become the world-leader in aluminum production by tonnage with an estimated 12.5% market share of global aluminum and 16% of global alumina production.

The agency described the transaction as a transformational event for SUAL and said its review will focus on the final capital structure of the combined group and SUAL's place therein, the fundamental credit characteristics of the combined business, shareholders' plans, the business strategy of the combined group, the financial profile of the combined company and SUAL after the merger and the medium operating and financial outlook.

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