Fitch assigns Eramet, notes BB+

Fitch Ratings said it published Eramet SA's long-term issuer default rating of BB+ with a stable outlook. The agency also published a BB+ rating for Eramet's outstanding senior unsecured notes. The recovery rating is RR4.

“Eramet's BB+ long-term IDR reflects its conservative and transparent capital allocation priorities, favorable cost positions, long reserve lives, and integrated business model combining mining and processing. The rating is constrained by comparatively smaller operational scale, currently limited diversification of operations and end-markets as well as exposure to developing countries including Gabon and Senegal,” Fitch said in a press release.

The agency noted that, “Construction of the lithium project in Argentina is underway with anticipated commissioning in 2024 (Tsingshan Holding Group will hold 49.9% following scheduled capital increases). A final investment decision for the first stage of the second phase, which would ultimately triple the capacity of annual lithium production to 75 thousand tonnes, is expected by end-2023.”

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