International credit rating agency Moody’s has announced that it has upgraded the corporate credit rating of Finland-based stainless steel manufacturer Outokumpu to B2 from B3. The outlook on the rating remains positive.
According to Moody’s, the upgrade of Outokumpu’s credit rating reflects the significant improvement of the company's credit metrics during 2016. Moody’s expects that Outokumpu will continue to improve its financial performance this year, achieving positive free cash flow. The company should be able to capitalize on the improved market conditions, both in terms of demand and base price, to grow its profitability and cash generation this year, the credit rating agency stated.
Moody's also expects that in the current year Outokumpu will be able to improve its EBITDA to levels ranging between €600 million and €650 million.