Fitch rates U.S. Steel loan, notes BBB-

Fitch Ratings said it assigned United States Steel Corp.'s $500 million three-year unsecured term loan a BBB- rating and its $500 million senior unsecured notes due 2018 a BBB- rating.

Fitch affirmed the company's issuer default rating, senior unsecured notes, senior unsecured revolving credit facility and senior unsecured term loan at BBB-, in consideration of its acquisition of Stelco Inc. for $1.2 billion.

The outlook is stable.

Proceeds of the new term loan and a $400 million one-year term loan helped fund the acquisition and retire the majority of Stelco's debt. Proceeds from the notes will be used to refinance the $400 million one-year term loan and for general corporate purposes.

Fitch said the ratings are based upon the strategic advantages associated with the transaction, coupled with U.S. Steel's solid capital structure and strong pro forma liquidity.

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