HELSINKI, Nov. 15, 2021 /PRNewswire/ -- Moody's has upgraded Outokumpu's issuer corporate family rating by two notches from B2 to Ba3. This is the best credit rating Outokumpu has had since the first launch of the rating in 2016, and already the second upgrade this year. The previous upgrade from B3 to B2 took place in May when Outokumpu prepaid its loans from financial institutions by EUR 210 million with the proceeds of the directed share issue.
Moody's also upgraded the instrument rating on the group's EUR 250 million guaranteed senior secured notes due June 2024 to Ba3 from B1. The outlook on the ratings has been changed to stable from positive.
Says CFO Pia Aaltonen-Forsell: "I'm proud that we have been able to reduce our net debt and future interest costs significantly this year. The upgrade by Moody's is a recognition of successful execution of our strategy and cost saving measures supporting elevated profitability level through the cycle. Deleveraging of the company and strengthening the balance sheet will continue during the first phase of our strategy by the end of 2022."
The upgrade to Ba3 follows Outokumpu's announcement on 4 November 2021 that it will repurchase in full its outstanding EUR 250 million senior secured notes ahead of its original maturity in June 2024 as well as the increase in its financial target on EBITDA run-rate improvement from EUR 200 million to EUR 250 million by the end of 2022.
The total redemption of the EUR 250 million senior secured notes due in 2024 will be the second material voluntary debt prepayment of the group this year.
Outokumpu first obtained Moody's rating in 2016.
More information on Moody's press release available at https://www.moodys.com/research/Moodys-upgrades-Outokumpus-CFR-to-Ba3-stable-outlook--PR_458078.
For more information:
Media: Päivi Allenius, VP – Communications, tel. +358 40 753 7374
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
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SOURCE Outokumpu Oyj