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Fitch Maintains ‘BB’ Rating for U.S. Steel Amid Acquisition Uncertainty


Updated: July 09, 2025 19:10

Fitch Ratings has affirmed United States Steel Corporation’s Issuer Default Rating at ‘BB’ with a stable outlook, reflecting confidence in the company’s operational resilience despite regulatory headwinds.
 
Key Highlights:
  • The rating affirmation follows the U.S. President’s January 3, 2025 order blocking Nippon Steel’s proposed acquisition of U.S. Steel, increasing uncertainty around the deal’s completion.
  • Fitch removed the company from Rating Watch Positive, citing lack of clarity on litigation outcomes and regulatory reversal.
Operational Strengths:
  • U.S. Steel’s strategic investments in Big River 2 and valueadded lines are expected to enhance margins and reduce earnings volatility.
  • The company maintains a strong liquidity position with $1.8 billion in cash and no outstanding borrowings on credit facilities.
Financial Outlook:
  • EBITDA leverage is projected to remain below 2.5x through 2027.
  • Fitch expects annual EBITDA to average $1.5–2 billion, supported by improved cost structure and product diversification.
Sources: Fitch Ratings, Zawya, Reuters.

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