Moody’s places Cleveland-Cliffs under review for downgrade

Tuesday, 29 September 2020 16:26:34 (GMT+3)   |   Istanbul
       

International credit rating agency Moody’s has announced that it has placed the B1 rating of US-based mining and natural resources company Cleveland-Cliffs Inc. under review for downgrade. This action follows the announcement by Cleveland-Cliffs of its acquisition of ArcelorMittal USA.

Moody’s stated that the review will focus on the expected operational efficiencies and ability to optimize production at the steel production sites as well as the expected cost profile and competitive position. Given the weaker steel industry operating performance in the first half of 2020 due to the impact of the coronavirus, and the slow recovery expected through the balance of the year and into 2021, Cleveland-Cliffs’ leverage is expected to be elevated, particularly given the assumption of pension obligations at ArcelorMittal USA.


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