Moody's may up Ispat, ISG

Moody's Investors Service said it placed the debt ratings of Ispat Inland Inc. (senior implied B3) and its affiliate Ispat Inland ULC. under review for possible upgrade. In a related action, Moody's placed the debt ratings of International Steel Group Inc. (senior implied Ba2) under review for possible upgrade.

Moody's may upgrade Ispat Inland Inc.'s B3 senior implied rating, B3 senior secured first-mortgage bonds and secured pollution control bonds, Caa2 unsecured industrial revenue bonds, Caa2 senior unsecured issuer rating, Ispat Inland ULC's B3 guaranteed senior secured notes due 2010 and 2014 and International Steel's Ba2 senior implied rating, Ba3 guaranteed global notes due 2014, Ba3 senior unsecured issuer rating and Ba2 guaranteed secured revolving credit facility due 2006.

The review is prompted by the announcement of the proposed three-way merger between Ispat International NV, LNM Holdings NV and International Steel to be completed in two stages, according to Moody's.

Moody's said the review for both Ispat Inland and International Steel will focus on the operational management of the companies and their respective facilities going forward, potential for cost reductions from more optimized mill production, likelihood of improved metallic input availability and costs and sustainable levels of margin performance through steel industry cycles.

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