Steel Products

Moody’s Cuts ThyssenKrupp to Junk Status

Written by Sandy Williams


Written by: Sandy Williams

Moody’s cut ThyssenKrupp’s credit rating to “junk” status reported Reuter’s on Thursday. Continued cash losses in the ThyssenKrupp Americas business and challenging market conditions were cited for the downgrade.

Moody’s said the Steel Americas current market value may be lower than the 3.9 billion Euros ($5.25 billion) written down last year and its probable sale in the fourth quarter will force ThyssenKrupp to absorb losses for the full year.

Standard and Poor’s and Fitch Ratings both cut ThyssenKrupp’s credit rating last year to BB and BBB-, respectively, with a negative outlook.

ThyssenKrupp has sold off nearly $13.5 billion in assets over the last 18 months. When divestments are completed, only about 30 percent of ThyssenKrupp’s business will come from the steel sector (Reuters).

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