Moody’s has downgraded Arcelor Mittal’s (www.corporate.arcelormittal.com) rating, as the group struggles due to the drop in steel prices.

Hubert Allemani, the ratings agency’s vice-president and lead analyst for Arcelor Mittal, said: “Our downgrade of the group’s rating to B-a2 — from B-a1 — primarily reflects its weaker operating performance since the beginning of 2015 as a result of falling steel prices.”

He added that “a material decrease in earnings before interest, tax, depreciation and amortisation from its mining operations” also contributed to the downgrade and that he sees “little prospect of recovery in the short term
to the levels required for a Ba-1 rating.”

Earlier this month, the steel giant issued its fourth profits warning in three years and suspended dividend payments.

Chief executive Lakshmi Mittal said: “Already challenging operating conditions have further deteriorated during recent months, largely due to additional declines in steel prices caused by exceptionally low Chinese export prices.”