S&P: ArcelorMittal outlook negative

Standard & Poor's said it revised the outlook on ArcelorMittal to negative from stable, following the sharp deterioration of conditions in the steel industry.

The BBB+ long-term corporate credit rating was affirmed.

"The outlook revision reflects our view that the current macroeconomic and steel industry environment increases the company's downside risks," S&P analyst Elena Anankina said in a statement.

The rating is underpinned by ArcelorMittal's strong cash flow generation, thanks to low costs and its flexibility in scaling back capital expenditures, which help mitigate negative industry effects and differentiate it from certain industry peers, the agency said.

The is supported by ArcelorMittal's role as the world's largest and most diversified steelmaker and a global footprint that helps improve its bargaining power against suppliers and customers, the agency noted.

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