Moody's ups Century Aluminum, rates secured notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Century Aluminum Co.’s new $250 million senior secured notes due 2028.

Moody's also upgraded Century's corporate family rating to B3 from Caa1 and the probability of default rating to B3-PD from Caa1-PD.

The proceeds from the proposed notes will be used to refinance the existing senior secured notes due 2025, for general corporate purposes and to pay for related transaction fees and expenses.

The speculative grade liquidity rating remains SGL-3. The outlook is stable.

“The ratings upgrade reflects the recovery in aluminum demand and prices, the signing of the new three-year Mt. Holly power contract with Santee Cooper and Moody's expectations that higher earnings and cash flow generation will meaningfully improve Century’s credit profile over the next 12-18 months,” said Botir Sharipov, vice president and lead analyst for Century Aluminum, in a news release.

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