KIEV, Nov. 6 – Moody's Investors Service has downgraded the Ba3 corporate family rating and the Aa1.ru national scale rating of Metinvest B.V. to B1 and Aa3.ua, respectively, and the senior unsecured rating of the loan participation notes, issued by Azovstal Capital B.V. to B2, Moody’s said in a statement.

The outlook on all ratings remains negative.

The rating action was prompted by a further weakening in the demand for steel products in Ukraine, the strong reduction of steel prices which is expected to lead a significant reduction in Metinvest's operating profitability and cash flow generation for the remainder of 2008 and into 2009.