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Moody's downgrades Nippon Steel from A2 to A3
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It’s reported that Moody’s downgraded the credit rating of Nippon Steel’s senior debt by a notch to A3 from A2, citing the planned merger of Japan’s largest steelmaker with smaller rival Sumitomo Metal Industries.
Moody’s warned that the tie-up would not immediately realize cost reductions, putting pressure on the merged firm’s balance sheet.
The global competition in the steel industry has intensified in recent years with demand spurred by emerging economies such as China, which are undertaking huge construction, infrastructure and manufacturing projects.
News Date
4/24/2012 1:59:43 PM
reported by
Margaret Yeh
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