FRANKFURT, Oct. 26 -- Moody's Investor Service has today commented on Mittal Steel's acquisition of Ukrainian steel producer Kryvorizhstal for a total purchase price of $4.8 bln.

Whilst the price for the acquisition will lead to a substantial increase in Mittal's absolute debt level and cash flow to debt leverage, Moody's corporate family rating of Baa3 incorporates continued external growth of Mittal leading to broader geographical and product diversification, (2) robustness of its above average operating margins, (3) its modestly leveraged pro-forma capital structure including the aforementioned acquisition, (4) the broadening low-cost production base, (5) a high degree of self-sufficiency in raw materials as well as (6) so far well-managed integration of other substantial acquisitions.