Moody's upgrades Outokumpu

Moody's Investors Service said it upgraded to B2 from B3 the corporate family rating and to B2-PD from B3-PD the probability of default rating of Outokumpu Oyj.

Concurrently, Moody's upgraded to B1 from B2 the rating on the group's €250 million of guaranteed senior secured notes due June 2024 and also changed the outlook to positive from stable.

"The upgrade to B2 follows Outokumpu's completion of private placement of 40.5 million new shares worth €209 million, with the proceeds to be used for debt repayments, which demonstrates its strong de-leveraging commitment,"said Goetz Grossmann, a Moody's vice president and Moody's lead analyst for Outokumpu, in a press release.

"The upgrade and outlook change to positive further recognize Outokumpu's very strong first quarter 2021 results and our upward-revised earnings and cash flow forecasts for 2021 and 2022. We now expect Outokumpu's credit metrics to reach levels at least in line with a the B2 rating over the next 12-18 months," Grossmann added.

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