DBRS Maintains Dofasco Inc. Under Review with Negative Implications

DBRS has today maintained the Under Review with Negative Implications status for Dofasco Inc. (Dofasco or the Company), which was last affirmed on June 26, 2006, following the announcement that Dofasco plans to redeem all of its outstanding medium-term notes (Notes). Dofasco is required to obtain approval from the Canadian holders of the Notes (representing at least 66 2/3% of the principal amount of the Notes) to amend the terms of the applicable trust indentures, in order to proceed with the redemption. DBRS expects that an outcome regarding the approval process will take place within three months.

In the event that the redemption is successful, it is unlikely that Dofasco would issue public debt in the future. As such, DBRS would likely discontinue the Company’s Senior Unsecured Debt rating as no public debt would be outstanding. In the event that the redemption is not completed, the rating is expected to be downgraded given Dofasco’s stronger credit profile on a standalone basis relative to that of its ultimate parent, ArcelorMittal. The merger between Arcelor SA (which wholly owns Dofasco) and Mittal Steel is expected to be completed in the coming months.

Note:
All figures are in Canadian dollars unless otherwise noted.