On June 22, international ratings agency Standard & Poor's announced that it has downgraded Japan's biggest steelmaker Nippon Steel on concerns over its profitability in the face of rising commodity prices.
S&P lowered the long-term rating on Nippon Steel to 'BBB+' from 'A-' with a stable outlook since the company is recovering more slowly than they first thought. Besides, Nippon Steel seems unlikely to improve measures of its credit quality in the next one to two years to levels appropriate for the rating.
As SteelOrbis reported earlier, US-based ratings agency Moody's Japanese unit downgraded Nippon Steel by one notch to A2 for the same reasons.
Tokyo-headquartered Nippon Steel Corporation produces high-quality steel for use in a variety of sectors globally, with the automotive industry being a key customer.