Research Update: World's Largest Steel Producer ArcelorMittal Outlook Revised To Negative; 'BBB-' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: World's Largest Steel Producer ArcelorMittal Outlook Revised To Negative; 'BBB-' Rating Affirmed

Research Update: World's Largest Steel Producer ArcelorMittal Outlook Revised To Negative; 'BBB-' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: World's Largest Steel Producer ArcelorMittal Outlook Revised To Negative; 'BBB-' Rating Affirmed
Published Oct 04, 2019
9 pages (4239 words) — Published Oct 04, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

The combination of deteriorating conditions in the European steel market and two large acquisitions will weigh heavily on ArcelorMittal's profitability and credit metrics in 2019. In response to the market downturn, the company launched several self-help measures to address the reduced cash flows and support its deleveraging journey. In our view, a muted recovery in the sector in 2020 together with a partial execution of its recently announced $2 billion divestment program should restore the company's credit metrics. We are therefore affirming our 'BBB-' long-term issuer credit rating on ArcelorMittal. The revision of the outlook to negative reflects a potential one-notch downgrade in the coming 12 to 24 months, if markets continue to deteriorate and the company experiences delays with

  
Brief Excerpt:

...- The combination of deteriorating conditions in the European steel market and two large acquisitions will weigh heavily on ArcelorMittal's profitability and credit metrics in 2019. - In response to the market downturn, the company launched several self-help measures to address the reduced cash flows and support its deleveraging journey. - In our view, a muted recovery in the sector in 2020 together with a partial execution of its recently announced $2 billion divestment program should restore the company's credit metrics. - We are therefore affirming our '###-' long-term issuer credit rating on ArcelorMittal. - The revision of the outlook to negative reflects a potential one-notch downgrade in the coming 12 to 24 months, if markets continue to deteriorate and the company experiences delays with its divestment program....

  
Report Type:

Research Update

Ticker
IST@NA
Issuer
ArcelorMittal
GICS
Steel (15104050)
Sector
Global Issuers, Structured Finance
Country
Luxembourg
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: World's Largest Steel Producer ArcelorMittal Outlook Revised To Negative; 'BBB-' Rating Affirmed" Oct 04, 2019. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-World-s-Largest-Steel-Producer-ArcelorMittal-Outlook-Revised-To-Negative-BBB-Rating-Affirmed-2313550>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: World's Largest Steel Producer ArcelorMittal Outlook Revised To Negative; 'BBB-' Rating Affirmed Oct 04, 2019. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-World-s-Largest-Steel-Producer-ArcelorMittal-Outlook-Revised-To-Negative-BBB-Rating-Affirmed-2313550>
  
US$ 225.00
$  £  €
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