Fitch rates KME notes B-

Fitch Ratings said it assigned a first-time expected issuer default rating of B- to KME AG, along with an expected rating of B with a recovery rating of RR3 to its proposed €300 million senior secured notes.

The outlook is stable.

The ratings are is constrained by the group's high leverage compared with peers, weak free cash flow generation and a weak liquidity position against the group's refinancing risks in 2018, Fitch explained.

The ratings also consider the group's leading positions in the copper processing industry, aided by a diversified geographic footprint, large-scale operations and improving profitability on the back of a restructuring program, Fitch said.

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