Fitch lowers ArcelorMittal

Fitch Ratings said it downgraded ArcelorMittal SA's long-term issuer default rating and senior unsecured ratings to BBB- from BBB and affirmed its short-term issuer default rating at F3.

The outlook is negative.

The downgrade reflects the challenging short-term outlook for steel markets, particularly in Western Europe, which will mean a slower rate of debt reduction over the next few years compared to previous expectations, Fitch said.

While the company continues to make good progress with non-core asset disposals and its cost-saving programs, these measures will not fully offset the negative impact of weaker organic cash flow generation, the agency said.

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