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

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.