Fitch downgrades Eramet

Fitch Ratings said it downgraded Eramet SA's long-term issuer default rating to BB from BB+ and its senior unsecured debt instrument rating to BB/RR4 from BB+/RR4.

“The downgrade reflects Eramet's reduced financial flexibility linked to negative free cash flow over the next four years amid a large investment program of around €900 million gross capex a year and weak cash flow generation in 2023, which together move EBITDA net leverage higher towards 2x after 2024,” the agency said in a press release.

The outlook is stable.

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