Research Update: Severstal Outlook Revised To Stable On Improved Performance; 'BB-' Rating Affirmed; 'BB-' Issue Rating Assigned Oct 10

Standard & Poors, October 2010

Abstract
Russia-based steelmaker OAO Severstal (Severstal)'s profitability and credit metrics are strengthening, due to stabilizing steel markets and management's corrective actions. We are revising our outlook on Severstal and on Severstal's U.S. subsidiary Severstal Columbus to stable from negative. We are also affirming our 'BB-' long-term corporate credit and issue ratings on Severstal, and our 'B' long-term corporate credit and issue ratings on Severstal Columbus. The stable outlook reflects our view that Severstal will continue to benefit from improving conditions in the steel market. On Oct. 13, 2010, Standard & Poor's Ratings Services revised its outlook on Russia-based steelmaker OAO Severstal (Severstal) and on Severstal Columbus LLC, a U.S. steel producer and a wholly owned, indirectly held subsidiary of Severstal, to...

Companies mentioned in this report are:
- OAO Severstal
- Steel Capital S.A.
- Severstal Columbus LLC
- Severstal Columbus Escrow LLC

Action: Affirmed
Action: New Rating
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

- OAO Severstal
- Steel Capital S.A.
- Severstal Columbus LLC
- Severstal Columbus Escrow LLC

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