International credit rating agency Fitch Ratings has downgraded the US-based integrated steel producer United States Steel Corporation's credit rating to 'BB-' from 'BB', affirming the rating outlook as stable.
The stable outlook indicates that US Steel's liquidity is sufficient to support operations should the recovery remain weak for the next 12-18 months. Fitch ratings reflect adequate liquidity, weak but improving market conditions, and a period of higher financial leverage while earnings are below the expected average.
As SteelOrbis previously reported, US Steel announced a Q1 2012 net loss of $219 million, following a $211 million loss in Q4 2011 and a Q1 2011 net loss of $86 million. However, adjusting for the $399 million after-tax loss on the sale of US Steel Serbia on January 31, 2012, US Steel had a profit of $110 million.