Moody’s assigns U. S. Steel notes Caa2

Moody’s Investors Service said it gave a Caa2 rating to United States Steel Corp.’s senior unsecured notes.

All of U. S. Steel’s other ratings, including its Caa1 corporate family rating, Caa1-PD probability of default rating, all debt instrument ratings, its speculative grade liquidity rating of SGL-3 and its stable outlook remain unchanged.

The company intends to use the proceeds with cash on hand to redeem the remaining 2025 senior secured notes with a principal of about $686 million net of its planned 35% equity clawback and to cover related fees and expenses. It may also use the proceeds for general corporate purposes, including further repayment of indebtedness.

“These transactions will push out U. S. Steel’s debt maturities, increase its financial flexibility, retire its high-cost debt and result in significant interest savings,” Moody’s said in a press release.

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