...United States Steel Corporation's ratings reflect the recently announced fully debt-funded acquisition of a 49.9% stake in Big River Steel (BRS) for cash consideration of around $700 million amid elevated capital spending, which is expected to be funded with around $1.6 billion of incremental debt, and weaker steel market conditions. The anticipated near-term debt issuance, and Fitch Ratings' view that debt repayment is unlikely over the next few years, is expected to result in total adjusted debt/EBITDAR sustained at 4.5x¡5.0x through the ratings horizon. Fitch views the acquisition of an interest in BRS as positive longer term, as U. S. Steel is effectively adding newer, lower- cost and more technologically advanced capacity. Fitch believes this will reduce volatility through the cycle, given the highly variable cost structure and relatively low maintenance capex associated with electric arc furnace (EAF) production. Fitch also views U. S. Steel's progress on its asset revitalization...
