Fitch ups Albemarle, revolver, notes to BBB

Fitch Ratings said it upgraded Albemarle Corp.’s long- and short-term issuer default ratings to BBB and F2, respectively.

The agency also upgraded the company's senior unsecured revolver and notes to BBB and commercial paper program to F2.

The outlook is stable.

“The upgrade reflects the high growth profile of Albermarle's lithium segment, its strong balance sheet, stable demand in the bromine and catalysts segments, and the oligopolistic nature of the markets in which the company operates,” Fitch said in a news release.

“The company's planned growth capex in lithium to boost production capacity will likely lead to negative FCF generation through 2020, but Fitch believes the capital spending will benefit Albemarle over the long term and position the company to take full advantage of continued growth in demand for electric vehicles.”

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