Sidetur on Negative Watch

Fitch has placed Sidetur on rating watch negative. The announcement follows the announcement Sunday by the Venezuelan government that it would nationalize the steel company. Fitch rates Sidetur’s $100m 10% senior unsecured notes due 2016 issued through its wholly-owned subsidiary Sidetur Finance. The negative watch reflects the uncertainty regarding the exact time by which the nationalization will be completed and its impact on the company’s operations during this process. This uncertainty will negatively affect labor productivity and the fluidity of day-to-day relationships with the company’s suppliers, customers and banking institutions that provide it with working capital financing.