OREANDA-NEWS. Standard & Poor's Ratings Services said today that its ratings and outlook on Russian steelmaker OAO Severstal (BB-/Stable/--) are not immediately affected by the $1 billion proceeds generated by its recent equity offering.

Standard & Poor's expects these proceeds to be used for future M&A activity.

The size of any potential acquisition, as well as its strategic fit into Severstal's operations and any additional financial requirements related to such an acquisition, remain unclear at this stage. Standard & Poor's will continue to monitor developments. We note that until any potential target materializes, the IPO proceeds will be kept on Severstal's balance sheet, boosting the company's liquidity position.