Fitch: Severstal off watch

Fitch Ratings said it removed OAO Severstal's senior unsecured B+ and national senior unsecured A (rus) ratings from Rating Watch Negative and affirmed both ratings.

Fitch said this rating action follows an Ontario court decision on March 30 to allow acquisition target Stelco Inc. to pursue capital-raising opportunities, which makes a successful takeover bid by Severstal unlikely.

The B+ rating on Severstal's $375 million senior unsecured bond is also affirmed at B+ and removed from Rating Watch Negative. The outlook is stable.

In November 2004, Fitch placed Severstal's ratings on Rating Watch Negative on the view that a successful acquisition of Stelco would have had a negative impact on Severstal's financial profile.

Earlier this month, Stelco's board of directors rejected Severstal's bid to take over the assets of the company.

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