Moody's boosts United States Steel

Moody's Investors Service said it raised United States Steel Corp.'s corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD, senior unsecured debt rating to B1 from B3 and Big River Steel LLC's secured debt rating to Ba2 from Ba3. U. S. Steel's speculative grade liquidity rating was changed to SGL-1 from SGL-2.

“U. S. Steel's operating results have materially strengthened in 2021 and we anticipate it will generate adjusted EBITDA of about $6 billion due to a quicker than anticipated recovery in its key end markets, with the exception of the oil & gas sector, along with the addition of Big River Steel and a surge in steel prices. Its U. S. Steel Europe segment will also benefit from the same improved fundamentals as its domestic operations,” Moody’s said in a press release.

The SGL-1 rating mirrors the view that U.S. Steel is expected to maintain very good liquidity, the agency said. It had $2 billion of unrestricted cash and borrowing availability of $1.746 billion on its $1.75 billion asset based revolving credit facility as of Sept. 30.

The outlooks for U. S. Steel and Big River Steel remain stable.

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