International credit ratings agency Fitch Ratings has announced that it has downgraded Luxembourg-based steel giant ArcelorMittal's long-term credit rating to 'BBB-' from 'BBB' and affirmed the outlook as negative.
According to Fitch's statement, "The downgrade reflects the challenging short-term outlook for steel markets, particularly in western Europe, which will mean a slower rate of debt reduction over the next two to three years compared to previous expectations. While ArcelorMittal continues to make good progress with non-core asset disposals and its cost-saving programs, these measures will not fully offset the negative impact of weaker organic cash flow generation."
The company's asset disposal and asset optimization programs are expected to support its recovery.