International credit ratings agency Moody's has announced that it has changed the rating outlook on Australian steelmaker Bluescope Steel to positive from stable. At the same time, Moody's has affirmed Bluescope's Ba3 corporate family rating.
Moody's stated that the change in outlook to positive reflects the agency's expectation of a strengthening in Bluescope's financial profile, which has undergone significant improvement in the last 12-to-18 months.
According to Moody's, based on the view of industry's operating environment, Bluescope's credit metrics are expected to continue strengthening to a level that could signal an upward rating movement in the next 12-18 months, assuming that the steel industry will not face any material pressures beyond current expectations, and that Bluescope will continue to benefit from low raw material costs, relative to the price of its finished products.
