Coronavirus Erodes Credit Rating of ArcelorMittal, World's Largest Steel Maker
April 08 2020 - 9:37AM
Dow Jones News
By Alistair MacDonald
Fitch Ratings downgraded steelmaker ArcelorMittal to junk
rating, or to BB+ from BBB- on Wednesday.
The ratings company said the economic fallout from coronavirus
will last through most of 2021, bringing pressure on steel
consuming industries, such as automotive and construction.
Steelmakers' share prices have been hammered by such concerns.
ArcelorMittal is down 41% so far this year, while Thyssenkrupp AG
is down 55% and United States Steel Corp is down 43%.
ArcelorMittal has idled steel plants around the world. Fitch
noted that the company has a history of taking decisive action to
manage crises and pointed out that its $10.4 billion of cash and
credit lines against short-term debt of $2.6 billion means that it
is actually "well placed to cope with the pandemic."
Moody's Investors Service and S&P Global Ratings still rank
the steel maker as investment grade--but in lowest rating of that
bracket.
Write to Alistair MacDonald at alistair.macdonald@wsj.com
(END) Dow Jones Newswires
April 08, 2020 09:22 ET (13:22 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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