Moody's may cut AK Steel

Moody's Investors Service said it placed AK Steel Corp.'s Ba2 corporate family rating and probability of default rating and the Ba3 senior notes ratings under review for possible downgrade. The notes are guaranteed by the company's parent AK Steel Holding Corp.

Moody's downgraded the speculative-grade liquidity rating to SGL-2 from SGL-1.

The review results from the company's continued challenges in returning to sustainable metrics appropriate for the Ba2 rating in light of the slow and bumpy recovery of the steel industry, the agency said. A further key factor prompting the review is the increasing cost pressure faced by AK Steel, particularly for iron ore and coking coal.

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