Moody's upgrades U.S. Steel

Moody's Investors Service said it upgraded United States Steel Corp.'s corporate family rating to B3 from Caa1, its probability of default rating to B3-PD from Caa1-PD and its senior unsecured debt rating to Caa1 from Caa2.

Simultaneously, Moody's upgraded subsidiary Big River Steel LLC's secured debt rating to B1 from B3.

The agency said it changed the outlook for both companies to positive from stable to reflect the likelihood U.S. Steel’s credit metrics will be strong for the rating over the next 12 months and that further ratings upside is possible if they are sustained at a similar level. The speculative grade liquidity rating was upgraded to SGL-2 from SGL-3.

"The upgrade of U. S. Steel's ratings reflects the materially improved steel sector fundamentals along with its recent debt and interest expense reduction initiatives, which will support a strong near term operating performance and sustainably stronger credit metrics," said Michael Corelli, a Moody's senior vice president and lead analyst for U. S. Steel, in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.