International credit rating agency Moody’s has announced that it has upgraded the credit rating of Luxembourg-based global stainless steel producer Aperam SA to investment grade 'Baa3' from 'Ba2', with a stable outlook.
Moody’s stated that over the last three years Aperam has consistently improved its profitability and cash flow generation. Aperam's efforts and dedication to lowering its cost base and improving efficiencies across its production plants, particularly in Europe, has led to the company more than doubling its reported EBITDA margin to approximately 12 percent at the end of 2016 from five percent in 2013. Moody's believes that the current EBITDA margin is sustainable, further supporting the investment grade rating.
The stable outlook on Aperam's ratings reflects Moody’s expectation that the company will continue to focus on operational improvement over the next 12 to 18 months to support or increase its profitability and free cash flow generation.