Fitch gives BB to Mytilineos, notes

Fitch Ratings said it assigned Mytilineos SA a long-term issuer default rating of BB and assigned Mytilineos Financial Partners SA’s upcoming notes an expected senior unsecured BB rating.

“The rating is underpinned by Mytil’s diversified business profile, synergistic business model, vertically integrated and low unit-cost metallurgy operations as well as strong and growing market position in the domestic electricity market that provides a cushion against cash flow volatility. The main rating constraints are the group’s small scale, exposure to cyclical end-markets, increasing leverage and forecasted negative free cash flow (FCF) in 2020-2021, driven by higher capex and working capital needs,” said Fitch in a press release.

The outlook is stable.

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