Fitch shifts Mytilineos view to stable

Fitch Ratings said it revised Mytilineos SA's outlook to stable from negative while affirming the group's BB long-term issuer default rating. The agency also affirmed the senior unsecured rating of BB for the notes issued by Mytilineos Financial Partners SA and guaranteed by Mytilineos SA. The recovery rating is RR4.

“The outlook revision to stable reflects Mytil's better-than-expected financial performance in 2020 and our expectation that leverage should remain within our sensitivities from 2022 onwards, despite large capex in 2021-2024 as it organically expands in the power division. We view the group's expansion to the less cyclical electricity business as credit-positive despite temporary leverage deviation outside our negative sensitivities and projected negative free cash flow (FCF) in 2021-2022,” Fitch said in a press release.

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