Bloomberg reported that ArcelorMittal is cut to 'sell' from 'buy' at Citigroup Inc, because of rising debt and falling global steel demand. Its debt has expanded after USD 8 billion of acquisitions this year and the credit crisis means financing costs will increase.

Citigroup Inc said that "The financial crisis continues to escalate and a contraction in margins could result in reductions of credit ratings and sharply higher interest costs. We reduce our earnings estimates for all the steel companies in response to lower volume, price and margin assumptions.''

The bank is forecasting global steel demand to fall 4.1% in 2009 and reduce by a further 2.8% in 2010. Previously, Citigroup was forecasting demand to fall 2% in 2009 and 1.1% in 2010.

ArcelorMittal South Africa Limited, SSAB AB, Voestalpine AG and Salzgitter AG were rated 'hold' by the bank.