The ratings on Netherlands-based Mittal Steel Co. N.V. and Luxembourg-based Arcelor S.A. are underpinned by the combined group's strong business risk profile as the world's largest and most diversified steelmaker. The ratings on both entities were equalized following the merger in August 2006, and the group is now referred to as Arcelor-Mittal. Arcelor-Mittal is the world largest and most diversified steelmaker, with significant vertical integration into iron ore and coal. This has a stabilizing effect on margins, provides a competitive advantage in supplying global customers, and improves bargaining power with suppliers and rapidly consolidating steel-consuming industries. Pro forma the merger, in 2006, the group generated $15 billion EBITDA on 110 million metric tons of steel production (17% of sales). Strong
