Moody’s changes Outokumpu’s outlook to stable

Wednesday, 17 February 2021 12:15:05 (GMT+3)   |   Istanbul
       

International credit rating agency Moody’s has announced that it has changed the outlook of Finland-based stainless steel manufacturer Outokumpu to stable from negative and affirmed the current ratings of B3.

The outlook stabilization follows the company’s solid results for the fourth quarter of 2020, which showed an over 14 percent year-on-year improvement in stainless steel deliveries, increased ferrochrome production, and positive effects from cost reductions across most divisions.

According to Moody’s, the stable outlook reflects Moody’s expectations that Outokumpu’s credit metrics will materially strengthen in 2021 on the back of a market recovery and measures taken to support profitability and cash-flow generation. A more pronounced improvement in the group’s operating performance in the next few quarters could lead to further positive rating pressure.

Moreover, the stable outlook assumes that the group will retain at least an adequate liquidity profile and maintain a prudent financial policy.

Moody’s also expects Outokumpu to achieve targeted €200 million run-rate EBITDA improvements by the end of 2022.


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