Moody's upgrades Outokumpu

Moody's Investors Service said it upgraded to Ba3 from B2 the corporate family rating and to Ba3-PD from B2-PD the probability of default rating Outokumpu Oyj. Concurrently, the agency raised to Ba3 from B1 the instrument rating on the group's €250 million of guaranteed senior secured notes due June 2024. The outlook has been changed to stable from positive.

"Today's upgrade recognizes Outokumpu's decision to redeem in full its €250 million guaranteed senior secured notes due 2024, which will noticeably reduce its gross debt and future interest costs and demonstrates an increasingly prudent financial policy," said Goetz Grossmann, a Moody's vice president and lead analyst for Outokumpu, in a press release.

"The rating action further reflects the group's considerable operating performance improvements this year and our expectation that its credit metrics will remain well in line with our requirements for a Ba3 rating over the next two years."

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