ARCELORMITTAL : Relèvement Notation Standard & Poors

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21 nov. 2007 •02:32

S & P passe de BBB à BBB+ dette long terme sur Arcelor avec "Perspective stable"

Standard & Poor's raised its credit rating Tuesday on ArcelorMittal to BBB+ from BBB, citing improved finances and a stable outlook for the world's largest steelmaker.

The move lifts about $26.6 billion of debt on the company's balance sheet a notch up the ladder of investment grade securities.

"The upgrade reflects ArcleorMittal's (MT) free cash flow generation, $9.6 billion in the 12 months to Sept. 30, 2007, which results in favorable credit metrics and enables the group to finance its growth ambitions largely from internally generated cash," Standard & Poor's credit analyst Elena Anankina said in a research note.

Luxembourg-based ArcelorMittal, forged in the 2006 merger between Arcelor S.A. and Mittal Steel Co. N.V., has earmarked $15 billion over the next five years to expand the business through acquisitions.

Given the company's financial stature and cash flow, Anankina said its capital expenditures program is unlikely to come under pressure. The merger also produced an estimated $1.3 billion in savings, while its ability to now supply 45% of its own iron ore further shields the company from volatile price swings on the commodity side of the business.

Bumping up the company's debt rating to BBB+ will also help it land cheaper financing whenever it elects to tap the credit market.

ArcleorMittal has forecast pre-tax income of $19.2 billion to $19.4 billion in 2007, up from $15.3 billion in 2006.

Shares of ArcelorMittal traded in the United States were up 3.6% midday Tuesday at $70.79.

(END) Dow Jones Newswires
November 20, 2007 15:03 ET (20:03 GMT)