September 07, 2008

CSC ratings unaffected by Dragon transaction

Taiwan Ratings Corp, a unit of Standard & Poor's, said that China Steel Corp's 'twAAA' long term corporate credit rating and 'twA-1+' short term credit rating will not be affected by the steel maker’s purchase of the outstanding shares in its Dragon Steel Corp unit.

The rating agency said as China Steel will issue new equity to complete the acquisition it does not expect the action to have a negative impact on the company's financial risk profile.

China Steel and its subsidiaries own a 69% stake in Dragon Steel.