Moody's puts Corus on review

Moody's Investors Service said it placed Corus Group plc's Ba2 corporate family rating, Ba1 €800 million secured bank facilities due 2008, B1 €800 million unsecured notes due 2011 and B1 £200 million unsecured notes due 2008 under review with direction uncertain.

The review follows the recommendation by Corus Group's board in favor of the proposed acquisition of the company's entire capital by Tata Steel Ltd. Moody's understands that Tata Steel UK, a wholly owned acquisition vehicle of Tata Steel, has raised £1.8 billion of cash from its parent and £3.5 billion of senior and subordinated debt to fund the acquisition and to refinance some of Corus Group's existing debt.

Moody's said its review will focus on the evolving capital structure supporting the acquisition, including the level of recourse that lenders to Tata Steel UK will require from Corus Group and Tata Steel; an assessment of the evolving fundamental credit characteristics of the combined business; new shareholders' plans and a business strategy for Corus Group; and the medium-term operating and financial outlook.

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