International credit ratings agency Fitch Ratings has announced that it has downgraded Luxembourg-based steel giant ArcelorMittal's credit rating to BB+, below investment grade.
The rating agency stated that the downgrade reflects the more challenging than previously expected outlook for western European steel markets in 2013, which in turn implies a slower pace of improvement in the group's credit metrics over the next two to three years.
According to Fitch, ArcelorMittal will continue to seek various measures including asset sales to reduce absolute debt levels. These measures will continue to offset the weakness in steel markets and underpin the stable outlook.
As SteelOrbis previously reported, earlier this month Fitch announced a negative outlook for the western European steel industry, stating that it does not expect steel output to recover in 2013 due to depressed demand levels across the euro zone.