S&P revises AMG outlook to stable

S&P said it revised the outlook for AMG Critical Materials NV to stable from positive and affirmed its B+ issuer rating.

“AMG will report materially weaker earnings in fiscal 2024 mainly due to depressed lithium prices, partly offset by better earnings in the other segments. Overall, we expect S&P Global Ratings-adjusted EBITDA will decline by about 60% to $120 million-$140 million in fiscal 2024, compared to an average of $329 million generated over the past two years,” the agency said in a press release.

However, S&P said it expects AMG has enough of a cushion in its credit metrics to absorb the lower prices, which it expects are at their bottom, and return them to metrics commensurate with the B+ rating.

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