S&P lifts Albemarle

S&P said it raised Albemarle Corp.’s by a notch, including the issuer rating to BBB and removed the ratings from CreditWatch with positive implications where they were placed on Feb. 3.

“The rating action follows the recent equity issuance and material reduction in debt. Albemarle issued $1.5 billion in equity and used the proceeds to reduce debt, leading to a material improvement in credit measures. Despite our expectation for flattish EBITDA in 2021, we believe the debt reduction will lead to an improvement in FFO to debt well into the 20%-30% range we consider appropriate for the BBB rating,” S&P said in a press release.

The outlook is stable, reflecting the expectation that the significant debt reduction reflects financial policies supportive of maintaining the BBB rating, including funds from operations (FFO) to debt in the 20%-30% range, the agency said.

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