S&P trims Ferroglobe

S&P said it lowered its long-term issuer credit rating on Ferroglobe plc to CCC+ from B-.

The outlook is negative.

Ferroglobe is still negotiating a refinancing of its revolving credit facility to avoid a covenant breach in the coming weeks.

“At the same time, a further decline in commodity prices leads us to cut again our already-low EBITDA projection for 2019 and 2020. We now consider the company's capital structure as unsustainable with adjusted debt of about $900 million, low profitability and negative free operating cash flow (FOCF),” S&P said in a news release.

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