Moody’s lowers Magnetation outlook

Jul 10, 2014 | 02:21 PM | Nat Rudarakanchana

Tags  Moody’s Investors Service, AK Steel, iron ore, Magnetation, pellets, steel, joint venture, negative credit outlook iron ore concentrate

NEW YORK — Moody’s Investors Service Inc. has assigned a negative credit outlook for Magnetation LLC, an iron ore joint venture half-owned by AK Steel Corp., citing weak and volatile iron ore prices.

The move covers about $425 million in debt issued or proposed by Grand Rapids, Minn.-based Magnetation, including $100 million in senior notes due 2018.

Moody’s changed the outlook from stable. "The negative outlook reflects the recent volatility and weakness in iron ore prices and the impact that will have on the company’s operating earnings, along with the leverage being added from the add-on note offering," Moody’s said in a July 8 report.....

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