S&P's Novolipetsk Steel ratings unaffected

Standard & Poor's said that its ratings and outlook on Russia-based OJSC Novolipetsk Steel (BB/stable) are unaffected by the company's announcement that it will acquire Russian coke producers Altai Koks and Prokopienskugol.

The ratings on Novolipetsk Steel already factor in further vertical integration through acquisitions of raw material suppliers, the agency said. These acquisitions will enable the company to be self-sufficient in coke, and the combined purchase price of $750 million - in addition to assumed debt and possible capital expenditure considerations - is unlikely to weaken its strong credit metrics. Before the acquisition, Novolipetsk Steel had about $2 billion in cash and no debt.

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