Moody’s upgrades Outokumpu’s issuer corporate family rating to Ba3 – the best credit rating since its first launch in 2016
Outokumpu Oyj
Press release
November 15, 2021 at 2.30 pm EET
Moody’s upgrades Outokumpu’s issuer corporate family rating to Ba3 – the best credit rating since its first launch in 2016
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
Outokumpu Oyj
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 9,500 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com