AP reported that Moody's Investors Service has reduced the rating outlook for AK Steel Corporation to 'negative' from 'stable', citing falling prices and low capacity in the steel industry. It also affirmed Ba2 corporate rating.

Moody's said that AK Steel's Ba2 rating is supported by its business mix that is heavily weighted to work tied to contracts and its strong liquidity position. It added that however, should its liquidity position deteriorate significantly the rating would come under further pressure.

Moody's said that AK Steel has successfully reduced its exposure to the battered automotive industry, but the market, particularly General Motors Corporation, Ford Motor Co and Chrysler LLC, still accounts for an important percentage of volume and earnings. It added that and although some costs used by AK Steel in its manufacturing process are moderating, the company still has a relatively high cost base.

(Sourced from www.ap.org)