Fitch lifts ArcelorMittal view to positive

Fitch Ratings said it affirmed ArcelorMittal SA's long-term issuer default rating and senior unsecured debt at BBB and its short-term issuer default rating at F2.

The outlook was changed to positive from stable, reflecting Fitch's opinion that ArcelorMittal's scale and diversity, combined with current developments to strengthen its operational profile, should enable the group to record more stable financial performance relative to industry peers in coming periods.

Factors supporting the ratings include ArcelorMittal's scale as the world's largest steel producer with significant product and geographic diversity, a comparatively high level of raw material ownership, low-to-medium overall production costs and strong cash flow generation, the agency said.

Constraints on the ratings continue to be the cyclicality of the steel sector combined with the inherent operational leverage of steel producers, as well as the more fragmented nature of the steel industry relative to key suppliers and end customers, Fitch said.

© 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.