Moody’s raises ArcelorMittal, notes to Ba1

Moody's Investors Service said it upgraded ArcelorMittal’s corporate family rating to Ba1 from Ba2, probability of default rating to Ba1-PD from Ba2-PD and senior unsecured ratings to Ba1 from Ba2.

At the same time, the agency affirmed the Not Prime short-term ratings.

The outlook is stable.

"Our upgrade to Ba1 reflects ArcelorMittal's strengthening credit profile and continued improvement in market conditions since we stabilized the outlook last August, as well as its significant deleveraging effort, which resulted in the reduction of Moody's adjusted leverage to 3.9x at the end of 2016 from 6.5x at the end of 2015, good liquidity and the company's return to be free cash flow positive. We also expect ArcelorMittal's credit metrics to remain solid into 2018 as demand picks up in its markets," Hubert Allemani, Moody's vice president, senior analyst and lead analyst for ArcelorMittal, said in a news release.

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