rene66 schreef op 30 september 2019 20:24:
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of AMG Advanced Metallurgical Group N.V.
27 Sep 2019
New York, September 27, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of AMG Advanced Metallurgical Group N.V. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on
www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
AMG Advanced Metallurgical Group N.V.'s (AMG) B1 corporate family rating (CFR) benefits from its good liquidity, long standing relationships with blue chip customers, strong market position as well as the geographic and end-market diversity. Critical materials, its largest segment, operates in a market with only a few large competitors and company's products play an important role in strengthening and lightweighting as well as the reduction of carbon emissions. This provides steady customer demand, especially with the growing importance of sustainability in the industry.
AMG's CFR is constrained by its small scale relative to higher rated manufacturers and its rising exposure to volatile and cyclical metals prices, particularly ferrovanadium and lithium. AMG's leverage is expected to increase following the issuance of the $307 million tax exempt bonds to fund the Cambridge II project which will double the capacity to produce ferrovanadium (FeV). The elevated capex will result in negative free cash flow through 2020 with little opportunity for debt reduction, although AMG is expected to maintain good liquidity. Credit metrics are expected to return to levels appropriate for the rating following the completion of the Cambridge II project in 2021.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Global Manufacturing Companies published in June 2017. Please see the Rating Methodologies page on
www.moodys.com for a copy of this methodology.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on
www.moodys.com for the most updated credit rating action information and rating history.