Fitch: ArcelorMittal will reduce debt with sale of US assets

Monday, 05 October 2020 16:17:53 (GMT+3)   |   Istanbul
       

According to global credit rating agency Fitch Ratings, ArcelorMittal’s sale of its integrated steel assets in the US to Cleveland-Cliffs is a step towards balancing the interests of various stakeholders. Fitch expects the transaction to have a neutral impact on the company’s rating. 

The company will use most of the cash from this transaction for shareholder returns through a $500 million share buyback program. Fitch stated that this transaction will reduce ArcelorMittal’s debt by 2.5 percent of total debt. Asset disposals will decrease ArcelorMittal’s annual cash needs by approximately $400 million, including maintenance capital expenditure, pension contributions, and other costs.

Last week, Cleveland-Cliffs announced the acquisition of ArcelorMittal USA, which will make the company the largest flat rolled and iron ore pellet producer in North America. 


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