Fitch cuts ArcelorMittal to F3

Fitch Ratings said it affirmed ArcelorMittal SA's long-term issuer default and senior unsecured ratings at BBB and downgraded the short-term issuer default rating to F3 from F2.

The outlook on the long-term issuer default rating is negative.

The affirmation reflects expectations of gross leverage moderating slightly in 2011, according to the agency.

The downgrade reflects the agency's revised guidelines, rather than a weakening in company-specific liquidity, which places emphasis on sustainable internal cash generation versus externally provided liquidity, Fitch noted.

Ratings are supported by the company's leading market position and expectation that the company's key credit metrics will show a steady but muted improvement over the next two years, the agency said.

Ratings continue to reflect the company's core strengths including its scale as the world's largest steel producer, the agency noted.

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