S&P affirms EES Coke

Standard & Poor's said it affirmed its BB rating on EES Coke Battery LLC's series B $75 million senior secured notes due 2007 and removed them from CreditWatch with positive implications, where they were placed Jan. 27.

The rating action reflects a similar action on EES Coke's primary offtaker, Mittal Steel USA ISG Inc. (ISG), following a review of the capital, legal and organizational structure of parent Mittal Steel Co. NV.

The outlook is positive.

S&P noted risks that include a high degree of business risk due to mature cyclical markets, new technologies that reduce the cost of coke and competition from minimills as well as high operating risks, such as maintenance requirements.

The above risks are somewhat mitigated by the company's facility is cost competitive with other coke-making facilities and it is reducing exposure to variability in coal prices, the agency noted.

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