Moody’s drops ArcelorMittal, notes to Ba2

Moody's Investors Service said it downgraded ArcelorMittal's corporate family rating and probability of default rating to Ba2 and Ba2-PD from Ba1 and Ba1-PD, respectively, and its senior unsecured ratings to Ba2 from Ba1.

The short-term ratings were affirmed at Not Prime.

The outlook is negative.

"Our downgrade of ArcelorMittal's rating to Ba2 from Ba1 primarily reflects its weaker operating performance since the beginning of 2015 as a result of falling steel prices, and a material decrease in EBITDA from its mining operations," Hubert Allemani, Moody's vice president, senior analyst and lead analyst for ArcelorMittal, said in a news release.

"While the company has improved its steel margin in Europe, its EBITDA will remain weak for the rest of 2015, with little prospects of recovery in the short term to the levels required for a Ba1 rating."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.