Credit rating agency Fitch has lowered the credit status of steel group ArcelorMittal to junk because of the difficult market conditions in the steel industry due to the corona crisis. This means that, according to Fitch, there are significant risks associated with the ability of ArcelorMittal listed on the Amsterdam stock exchange to meet its financial obligations.
The rating goes from BBB- to BB +, with a negative outlook. Fitch argues that the corona crisis will put demand for steel under considerable pressure, such as from the automotive and construction industries, for a long time, and that steel prices will fall this year. To deal with the crisis, ArcelorMittal is reducing production and cutting costs.
ArcelorMittal, the world’s largest steel group, is suffering from a net debt of more than $ 9 billion and is reducing it. At the Amsterdam stock exchange, ArcelorMittal shares have risen sharply in recent days due to optimism about a possible flattening of the corona pandemic.