S&P rates Aperam, bond BB

Standard & Poor's said it assigned a BB long-term corporate credit rating to Aperam SA, a stainless and specialty steel producer that was spun off from ArcelorMittal.

This rating is in line with BB preliminary rating assigned in February.

The outlook is stable.

The agency also said it assigned a final BB rating to its $500 million bond with a recovery rating of 4, indicating 30% to 50% expected recovery in a default.

The ratings follow Aperam's refinancing of $400 million of its $900 million bridge loan from ArcelorMittal Finance with borrowings under the recently signed $800 million borrowing base facility and its successful placement of the $500 million bond, S&P said.

The ratings reflect a view of Aperam's business risk profile as fair and financial risk profile as significant, S&P said.

The company is expected to maintain its business position and demonstrate prudent financial management, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.