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Moody’s rates Ferroglobe B1, notes B3
Moody's Investors Service said it assigned a provisional B1 corporate family rating to Ferroglobe plc, the company formed via the merger of Ferroatlantica SA and Globe Specialty Metals, Inc. completed in December 2015.
Concurrently, the agency assigned a provisional B3 rating to the $350 million of senior unsecured notes due 2022 to be issued by Ferroglobe and its U.S. subsidiary Globe.
Proceeds will be mainly used to repay the existing debt of both Ferroatlantica and Globe.
The outlook is stable.
Moody’s said the provisional B1 corporate family rating recognizes Ferroglobe's leading position in the global niche silicon metal market, supported by a competitive advantage in terms of: (a) Scale of its manufacturing base corresponding to c.30% of global silicon metal capacity excluding China; (b) high degree of operational diversification with 26 facilities across several countries and continents; (c) balanced geographic presence between Europe (48% of sales) and North America (36%); and (d) improving average cost position, which has recently moved below the middle percentile of the reference industry cost curve according to CRU by exceeding the cost saving targets set upon completion of the merger.
Ferroglobe is also one of the largest suppliers of ferroalloys for the steel industry, with a particularly strong presence in Europe where it is the third largest regional player, the agency added.
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