Fitch lifts Molymet national ratings

Fitch Ratings said it affirmed Molibdenos y Metales SA's (Molymet) foreign- and local-currency long-term issuer default ratings at BBB and national scale ratings at AAA(col) and AA+(mex).

Fitch also said it upgraded the national scale long-term ratings to AA-(cl) from A+(cl).

The strengthening of the company's credit metrics and its stronger business profile are more consistent with AA-(cl) rating category on the national scale, the agency said.

Fitch also said it affirmed the company's senior unsecured debt rating at BBB, certificados bursatiles at AA+(mex) and national equity rating at Level3(cl).

The ratings reflect the company's robust capital structure as demonstrated by its five-year average net debt-to-EBITDA ratio of 1.7x, despite weak molybdenum prices and the relevant loss of Molycorp investment for about $600 million, the agency said.

The company benefits from a stable EBITDA generation despite price volatility, Fitch added.

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