Fitch raises Derichebourg

Fitch Ratings said it upgraded Derichebourg SA's long-term issuer default rating and senior unsecured ratings to BB+ from BB.

“The upgrade of Derichebourg reflects our downwardly revised forecast of funds from operations (FFO) net leverage to below 2x over the forecast horizon to 2025. It also factors in its leading market position in the French metals recycling business, with additional geographic diversification into Spain, Germany, Belgium, Mexico, North America, its disciplined approach to maintaining sustainable margins, strong cash flow generation and a conservative target net debt/EBITDA of under 1x (reported),” Fitch said in a press release.

The agency noted the healthy demand for ferrous scrap and base metals in the financial year to September 2021 (FY21) and FY22 helped above-trend margins and cash flow generation.

The outlook is stable.

© 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.