MARC has today published an updated version of the methodology it uses to assign ratings to companies in the steel industry. This update supersedes MARC’s “Steel Industry” methodology published in April 2015.
The updated methodology incorporates recent developments in the steel industry including changes in the pricing mechanism of raw materials, industry landscape and supply-demand dynamics. It also refines our analysis of steelmakers’ financial risk profiles, particularly with respect to cash flow adequacy and liquidity. The adverse operating environment in the steel industry in recent years has brought steelmakers’ working capital positions and liquidity risks into sharp focus, necessitating an analysis of the impact of uncollectible accounts and tightened access to external funding.
Overall, there are no material revisions in the updated methodology that would result in rating changes arising from the implementation of this methodology update. The updated methodology can be accessed on MARC’s website at Rating Approach to Steel Industry.
Yap Lai Ken, +603 2717 2947 / email@example.com.