Moody's cuts ArcelorMittal

Moody's Investors Service said it downgraded ArcelorMittal's senior unsecured note ratings to Ba1 (LGD3, 49%) from Baa3.

The action includes the senior unsecured notes and euro medium-term notes of ArcelorMittal and the senior unsecured notes of ArcelorMittal Finance and ArcelorMittal USA.

The rating for the parent's subordinated perpetual capital security was lowered to Ba3 (LGD6, 97%) from Ba2 and its commercial paper rating was lowered to NP from P-3.

Moody's assigned Ba1 corporate family and probability of default ratings to ArcelorMittal.

The outlook remains negative for all three issuers.

Moody's said the downgrade reflects the deterioration in global steel markets over the last six months, as evidenced by ArcelorMittal's third quarter 2012 performance, its worst quarter since the second quarter of 2009.

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