Moody's might cut U.S. Steel to junk

Moody's Investors Service said it placed the Baa3 senior unsecured ratings of United States Steel Corp. under review for possible downgrade.

The agency said the review results from the challenges facing the company as steel industry conditions remain difficult with very weak demand and low capacity utilization levels. United States Steel has reduced production in an attempt to better match the low demand levels, but Moody's expects the reduced ability to absorb fixed costs, the low operating rates and lower prices will result in losses until conditions improve significantly.

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