Moody's may up Ispat Europe, International

Moody's Investors Service said it placed all the ratings of Ispat Europe Group SA and Ispat International NV under review for possible upgrade, following the announcement by Ispat International, Ispat Europe's guarantor, that it will acquire LNM Holdings NV, subject to a number of conditions, including the approval of the shareholders of Ispat International.

Assuming completion of the transaction, the company would be renamed Mittal Steel Co. NV. Mittal Steel would then acquire International Steel Group Inc., forming the world's largest steelmaking company.

On review for upgrade are Ispat Europe's B2 senior implied rating, Caa1 unsecured issuer rating and B3 rated €92 million 11 7/8% senior secured notes due 2011 and Ispat International's Caa1 unsecured issuer rating.

Moody's said it believes that Ispat Europe's outstanding debt obligations would, in all likelihood, benefit from the announced transaction.

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