S&P moves Metalloinvest view to positive

S&P said it revised Metalloinvest’s outlook to positive from stable and affirmed its BB+ issuer rating.

“Metalloinvest should have high capacity to reduce absolute debt in 2021, which could open the door to a BBB- rating.In line with its plans, Metalloinvest reduced gross debt to $3.6 billion at year-end 2020 and plans to reduce it further. We believe that reduction in absolute debt to about $3 billion could be commensurate with a higher rating,” S&P said in a press release.

The outlook indicates the agency a possible boost to an investment-grade rating in the next 12 months if Metalloinvest demonstrates commitment to cut absolute debt to below $3 billion on the back of free operating cash flow, which would enable it to maintain strong credit metrics even in an industry downturn, S&P said.

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