On April 27, 2007, Standard&Poor's Ratings Services revised its outlook on the world's largest steelmaker, Netherlands-based Mittal Steel Co. N.V. and Luxembourg-based Arcelor S.A. (together referred to as Arcelor-Mittal, after the merger in August 2006) to positive from stable. At the same time, the 'BBB' long-term corporate credit rating on Arcelor-Mittal was affirmed. The outlook revision reflects the combined group's improving financial profile and successful integration progress. Although the group's debt increased substantially after the merger, Arcelor-Mittal's strong free operating cash flow (FOCF) already helped reduce on-balance-sheet debt by $2 billion in fourth-quarter 2006 alone, and substantially improved credit metrics. At Dec. 31, 2006, the group's on-balance-sheet debt was $26.6 billion, which we adjust for postretirement and other
