Moody's cuts Aperam

Moody's Investors Service said it lowered its ratings for Aperam SA.

Specifically, the agency lowered the corporate family and probability of default ratings to B1 from Ba3 and dropped the rating on Aperam's senior unsecured notes to B3 from B2. The outlook remains negative.

The agency said the downgrades reflect Aperam's poor operating and financial performance stemming from weak demand for stainless steel, low nickel and stainless prices and few prospects for near-term improvement due to the languid state of the European, Brazilian and Chinese economies.

Moody's said the downgrade also acknowledges Aperam's high leverage. In addition, the downgrade reflects the heightened possibility, in Moody's opinion, of Aperam moving into a negative free cash flow position.

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