S&P rates Thornburg Mortgage notes BB-

Standard & Poor's assigned a BB- rating to Thornburg Mortgage Inc.'s planned $150 million notes due 2013. The outlook is stable.

S&P said the ratings reflect Thornburg's high-quality assets, respectable operating performance through various economic environments and demonstrated success in raising equity during difficult market conditions.

Thornburg has appropriate leverage on a risk-adjusted basis, given the company's REIT status, S&P added.

Although the company's REIT status hinders its ability to add to capital through retained earnings, Thornburg has been successful in raising additional capital through the equities markets. During first-quarter 2003, the company raised $122.2 million of new capital, S&P noted.

The outlook is based on continued respectable financial and asset quality performance, maintaining appropriate leverage, and Thornburg's focus on maintaining a balance sheet of high-quality mortgage-related assets.

S&P cuts Lindsey Morden

Standard & Poor's downgraded Lindsey Morden Group, Inc. including cutting its C$125 million notes to B from BB-. The outlook is negative.

Standard & Poor's said the action is because of concerns about Lindsey Morden's near-term liquidity management.

At year-end 2002, Lindsey Morden had access to committed lines of credit totaling C$47 million, of which C$44 million has been drawn down on. The existing facility includes a step-down provision, whereby Lindsey Morden must reduce its borrowings under the committed facility to C$26 million by Oct. 31, 2003, and to zero by Oct. 31, 2004.

The company's ability to meet these various payments through internal means is highly uncertain, S&P said.

S&P puts Stelco on watch

Standard & Poor's put Stelco Inc. on CreditWatch with negative implications including its C$125 million 10.4% retractable debentures due 2009 and C$150 million 8% debentures due 2006 at BB- and C$90 million 9.5% convertible debentures at B.

S&P said the action is due to a weakening financial profile, specifically weakness in earnings and uncertain prospects for steel prices and demand.

Stelco faces difficult industry conditions, resulting from lower industrial demand, sharply reduced spot market prices and higher input costs.

As a result, credit measures have fallen below S&P's previous expectations.

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