Moody’s has downgraded the credit rating for steel giant ArcelorMittal, which is listed in Amsterdam. The group now has so-called junk status now, with a stable outlook.

According to Moody’s, the effects of the crisis are unprecedented. The rapid spread of the coronavirus is worsening the global economic outlook, and has also caused declining oil prices and asset price declines in many sectors. All in all this is negative for Arcelor.

The steel sector is even more sensitive to consumer demand and sentiment. Moody’s also points to Arcelor’s exposure to cyclical end-markets such as the automotive, machinery and construction sectors that are hit hard by the crisis.

Moody’s lowered the judgment on Arcelor to Ba1. The outlook went from negative to stable.