Arcelor Mittal are rating agency Moody's cut its rating to Ba2
Recently steel giant Arcelor Mittal (ArcelorMittal) are rating agency Moody's cut its rating to Ba2
China's steel industry struggling in the profit and loss of foreign giant steel prices also sad day. Recently steel giant Arcelor Mittal (ArcelorMittal) are rating agency Moody's cut its rating to Ba2, its corporate family rating (CFR) and probability of default rating (PDR) was lowered to Ba2 and Ba2-PD respectively.
Moody's believes that, because the steel prices, ArcelorMittal year operating performance continued to weaken, its mining operations earnings before interest, tax, depreciation and amortization (EBITDA) also declined substantially. Moody's noted that ArcelorMittal possibility before the end of the year to improve the profitability of small, difficult to restore the level of short-term rating of Ba1.
Disclosure ArcelorMittal Recently, the third quarter net loss of $ 700 million, the company suspended dividend. ArcelorMittal "complained" that imports from China and the CIS steel, making it the European steel market prices under pressure.
It should be noted that steel demand, production decline is a global phenomenon. According to forecasts of the World Steel Association, global steel demand in 2014, following growth of 0.7% will fall 1.7 percent to 1.513 billion tons in 2015. In the first 10 months, 66 countries worldwide crude steel production totaled 1.326 billion tons, down 2.5%.
Among them, China as the world's largest steel producer, the first 10 months this year, crude steel production was 675 million yuan, down 2.2%. China Iron and Steel Association statistics show that in the first nine months, China's medium-sized steel enterprises realized sales income of 2.24 trillion yuan, down 19.26%; total profit loss of 28.122 billion yuan, of which 55.271 billion yuan loss of steel Main Business .