Moody’s lowers rating of ArcelorMittal debt – Le Figaro

Moody’s downgraded Thursday its debt rating to Ba2 from ArcelorMittal, with a negative outlook.

“Our downgrade the rating of Ba1 to Ba2 ArcelorMittal primarily reflects its weaker operating performance since early 2015 as a result of lower steel prices and a decrease in EBITDA derived from mining operations “, explains Hubert Allemani, Moody’s analyst who follows the world’s largest steelmaker.

” Although the Group has improved its margins in the steel in Europe, its EBITDA will remain low until the end of 2015, with few short-term recovery outlook to return to the level required for a Ba1 rating, “he justifies.

The negative “outlook takes into account the many uncertainties surrounding the pricing environment in Europe and the United States (…) and the headwinds on steel demand China will push Chinese producers to continue to look to foreign markets to sell their excess capacity, “the statement added.