Moody's rates Aperam Ba2

Moody's Investors Service said it assigned a provisional Ba2 corporate family and probability-of-default rating to Aperam SA.

The outlook is stable.

Aperam's corporate family rating is supported by its market-leading positions in Europe and Brazil and an extensive distribution network in flat stainless, adjusted debt-to-EBITDA ratio of less than 3x as of the first half pro forma and the group's adequate post refinancing liquidity, supported by a long-term borrowing base bank financing and loans provided by its former parent, ArcelorMittal, the agency said.

Weighing on the rating is Aperam's dependency on the profit contribution of Brazil, high volatility of input prices, significant import threats from Chinese stainless steel producers, overcapacity and foreign-currency fluctuations, the agency noted.

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