International credit rating agency S&P Global Ratings (Standard & Poor's Ratings Services) has announced that it has raised its long-term corporate credit rating on Luxembourg-based stainless steel producer Aperam to 'BBB-' from 'BB+'. The outlook is stable.
S&P stated that the upgrade of Aperam’s credit rating reflects the continued strong and resilient operational performance of the company, supported by an ongoing restructuring and cost-reduction program. S&P said it believes the stainless steel industry is seeing signs of recovery, which will continue to positively reflect on Aperam's operating performance and free cash flow generation, as the company is now well positioned to reap the full benefits of the improved market conditions.
Meanwhile, Aperam has good visibility through the first half of the current year, expecting positive results similar to those in the first quarter, according to S&P’s statement. On a full-year basis, S&P expects the 2016 performance to be surpassed. Hence, the credit rating agency forecasts that Aperam will report about $590 million of adjusted EBITDA for this year, compared with $505 million in 2016.