S&P gives CitiSteel notes CCC+

Standard & Poor's said it assigned its B- corporate credit rating to CitiSteel USA Inc. while assigning its CCC+ senior secured debt rating to the company's proposed $170 million floating-rate notes due 2010.

The outlook is stable.

S&P said the ratings on custom steel plate producer CitiSteel USA reflect its very limited operating diversity, high cost position, cyclical end markets and an aggressive use of financial leverage.

These factors much more than offset benefits from currently favorable conditions in its markets, the agency added.

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