S&P assigns Metalcorp, notes B

S&P said it assigned B ratings to Metalcorp Group SA and its planned €250 million of senior secured notes to refinance its debt and improve its liquidity position. The agency also assigned a positive outlook.

“The B rating on Metalcorp reflects our assessment of its weak business risk profile and highly leveraged financial risk profile, as well as potential support from its parent company, Monaco Resources Group SA (MRG). Our rating reflects Metalcorp's ongoing transition from metal trading and downstream activities to upstream activities through its two bauxite mines in Guinea. Together with the shift in the business model, the company's financial position will become more favorable, with a better match between profitability and overall debt, and positive free cash flow,” the agency said in a press release.

The outlook reflects a possible upgrade over the next 12 months as Metalcorp meets its mine ramp-up objectives while improving its credit metrics.

© 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.