Standard & Poor’s (S&P) has placed a ‘BBB+’ long-term issuer credit rating on Nippon Steel Corp on negative credit watch.
This decision comes after Nippon Steel secured a deal to acquire U.S. Steel for $14.9 billion in cash.
S&P has expressed concerns that the acquisition is poised to lead to a substantial deterioration in Nippon Steel’s financial position due to a significant rise in debt for investments associated with the deal. The negative credit watch indicates S&P’s apprehensions about the potential impact of the acquisition on Nippon Steel’s creditworthiness.