Moody's Upgrades Befesa

Moody's Investors Service said it upgraded Befesa Holding Sarl’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD, Bilbao (Luxembourg) SA’s senior subordinated PIK notes to Caa1 (LGD6) from Caa2 (LGD5) and Zinc Capital SA’s senior secured bonds to B1 (LGD3) from B2 (LGD3). The outlook is stable.

Befesa Holding is the ultimate holding company for the Befesa Medio Ambiente Group.

The agency said the upgrade reflects the company's strengthened operating and financial profile, helped by various factors including higher zinc prices on the back of a tight demand and supply balance as well as benefits from a weaker euro, considering that the company's reference prices are quoted in dollars. The company's ratio of debt to EBITDA has improved to around 5x, and Moody’s expect this metric to further improve to around 4.5x over the course of 2015.

The rating continues to reflect the company’s significant exposure to zinc price movements, Moody’s 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.