S&P downgrades U.S. Steel

S&P said it lowered its ratings on U.S. Steel Corp. and its senior unsecured debt to B- from B.

The outlook is negative.

“Sharply weaker market conditions for steel in the U.S. and Europe will hit U.S. Steel Corp.'s volumes and earnings in 2020 as it continues with large capital outlays on strategically important projects,” S&P said in a news release.

“Adjusted leverage will likely remain well above our 5x threshold for a lower rating again in 2020 because of sharply lower demand from the compounding effects of the oil and gas slowdown, the Covid-19 pandemic, and already weaker volumes in the auto sector.”

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