S&P: SSAB on negative watch

Standard & Poor's placed its BB- long-term corporate credit rating on SSAB AB on CreditWatch with negative implications and affirmed the B short-term rating.

S&P also placed on CreditWatch negative its BB- issue ratings on SSAB's senior unsecured debt.

The 3 recovery rating on this debt is unchanged, indicating S&P’s expectation of meaningful recovery, in the lower half of the 50%-70% range, in the event of a payment default, the agency said.

The CreditWatch placement follows the company’s profit warning for the fourth quarter of 2015 of less than SEK 250 million (about €27 million) EBITDA. S&P understands that Chinese, Russian and Korean exports into Europe and the U.S. are putting significant downward pressure on prices and that key buyers have adopted a wait-and-see approach in view of rapidly falling iron ore prices, the agency said.

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