S&P: Corus Group on developing watch

Standard & Poor's said it kept its BB long-term corporate rating on Corus Group plc on CreditWatch with developing implications, following the announcement by Companhia Siderurgica Nacional (BB/Watch negative) of a proposed takeover offer worth 475 pence per share.

At the same time, the BB+ senior secured bank loan ratings and BB- unsecured debt ratings on Corus remain on CreditWatch with developing implications, the agency said, adding that the B short-term corporate credit rating remains on CreditWatch with positive implications.

S&P added that the ratings on Corus continue to reflect its high cost position in the U.K. carbon steel market and they also reflect the company's below-average profitability and cash flow generation in an industry that is characterized by high cyclicality, capital intensity and strong competition.

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