Bangkok--21 Jun--Moody's Investors Moody's Investors Service maintains a stable rating outlook for the Asian steel sector as market conditions in China and global consolidation trends remain the key themes for the sector. "Although near term fundamentals remain supportive for the sector, the potential for event risk is significant due to the effects of an ongoing global consolidation trend, particularly in Asia, where production has long been highly fragmented," Moody's says in a new report. The report examines the outlook for ratings and consolidation trends, and input costs for the steel industry in Asia, excluding Japan. It is authored by Terry Fanous and Alan Greene, both Moody's Senior Vice Presidents, along with analyst Nancy Koh. The report is part of Moody's Industry Snapshot series, which offer succinct and incisive overviews of particular sectors. "China -- the world's largest steel consumer -- remains the main driver for the industry's price and demand dynamics," says Fanous, adding, "Overcapacity led to considerable growth in exports in early 2007, although prices have held up reasonably well." "China's objective has been to manage down its steel production, over-capacity, and while it has made some progress in this area, more could be done. The recent initiatives to curb exports should besupportive for the industry overall" Fanous concludes. Greene says that "the industry faces significant event risk as it continues to undergo a high level of consolidation activity, but this will likely have positive effects for the industry as a whole over time." "However, companies have shown a willingness to take on debt to finance these activities, and how they manage growth while maintaining balance sheet strength will be a key rating factor going forward," adds Greene. The report - "Industry Snapshot: Asian Steel Sector" - can be found at www.moodys.com . NOTE TO JOURNALISTS ONLY: For a copy of this report, please contact New York Press Information +1-212-553-0376; EMEA Press Information in London +44-20-7772-5456; Juan Pablo Soriano in Madrid +34-91-310-1454; Henry MacNevin in Milan +39-02-58-215-580; Eric de Bodard in Paris +331-5330-1076; Detlef Scholz in Frankfurt +49-69-707-30-700; Mardig Haladjian in Limassol +357-25-586-586; Alex Sazhin in Moscow +7 495 641 18 81; Petr Vins in Prague +4202 2422 2929; Tokyo Press Information +813-5408-4110; Hilary Parkes in Toronto +1-416-214-1635; Hong Kong Press Information +852-2916-1150; Melinda Keating in Sydney +612 9270 8141; Luiz Tess in Sใo Paulo +5511-3043-7300; Alberto Jones Tamayo in Mexico City +5255-1253-5700; Daniel R๚as in Buenos Aires +54 11-4816-2332 ext. 105; or Reynold Leegerstee in Johannesburg +27-11-217-5471 or visit our web site at www.moodys.com Singapore Alan Greene Senior Vice President Corporate Finance Group Moody's Singapore Pte Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (65) 6398-8308 Sydney Terry Fanous Senior Vice President Corporate Finance Group Moody's Investors Service Pty Ltd JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100