Moody’s trims ArcelorMittal

Moody’s Investors Service said it downgraded ArcelorMittal’s senior unsecured ratings to Ba1 from Baa3. Concurrently, Moody’s assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating to ArcelorMittal.

Moody’s also changed the outlook to stable from negative.

“ArcelorMittal’s rating had been very weakly positioned already before the coronavirus outbreak against subdued demand and deteriorating profitability during 2019, caused by narrowing steel spreads on falling steel prices, structural overcapacity of the steel industry and surging raw material costs,” the agency said in a press release.

“The Ba1 rating with a stable outlook reflects Moody’s expectation that the company should be able to restore metrics back to the requirements for the current rating over the next years,” the agency said.

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