Moody's affirms Lucchini

Moody's Investors Service said it affirmed the Ba3 corporate family rating of Lucchini SpA.

The outlook is stable.

The current rating reflects: (i) Moody's acknowledgement of Lucchini's ongoing recovery as a result of re-capitalization which substantially improved the capital structure and restored credit metrics to more comfortable levels, (ii) improved 2006 financial results and cash flow generation ability, (iii) the company's improving geographic focus, including product supplies to North American and Russian markets, as well as its existing broad customer base;

(iv) continued good industry environment which has further contributed to Lucchini's restored profitability after a period of losses, (v) ongoing modernization program aimed at improving productivity and efficiency, (vi) a committed and resourceful majority shareholder, Russian steel maker OAO Severstal, the agency said.

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