...Outlook for Steel Negative: The rating and sector outlooks for western European steel are both negative for 2016. The negative sector outlook reflects our expectation that Chinese imports will remain at a high level in 2016. In the absence of EU tariffs or other similar measures, this will continue to place downward pressure on EU steel prices. Fitch rates two companies in the consolidated western European steel sector: ArcelorMittal S.A. (AM; BB+/Negative) and ThyssenKrupp AG (TK; BB+/Stable). Depressed steel prices will continue to affect producer credit profiles. Producers will continue to offset these pressures through reductions in capex and dividends as well as non-core asset disposals. TK will be less impacted by this environment due to the diversification provided by its significant non-steel operations. Increasing Chinese Imports: As expected, the slowdown in domestic Chinese demand for steel is pushing an increasing amount of steel into export markets. Based on latest available...
