Fitch rates ArcelorMittal bond BBB

Fitch Ratings said it assigned ArcelorMittal SA's $3 billion bond issue, consisting of five-year $1.5 billion 5.375% and 10-year $1.5 billion 6.125% notes, a final senior unsecured BBB rating.

The rating is in line with the company's BBB long-term issuer default rating, which was affirmed, along with its senior unsecured ratings at BBB and short-term issuer default rating at F2.

The outlook is positive.

Proceeds are intended to refinance and extend the tenor of existing group debt.

Fitch noted that the bond documentation includes protection to bondholders in the event of an acquisition through a change of control clause, although there are some exceptions including a change of control involving members of the Mittal family.

While there are no restrictions on additional debt, the bonds benefit from a negative pledge regarding secured indebtedness at the company and subsidiaries, the agency said.

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