Fitch upgrades Mytilineos S.A. to ‘BB+’; Outlook Stable

Fitch Ratings has upgraded Mytilineos S.A.’s long-term Issuer Default Rating (IDR) to ‘BB+’ from ‘BB’ with a stable outlook. It forecast a further improvement of operating earnings (more than 900 million euros in 2023) in the coming years.
The upgrade is driven by expectations of the group’s solid operating performance in 2023 and beyond, characterised by enlarged operations due to growing exposure to the more stable and resilient power and gas segment, and expected increased earnings from execution of build-own-transfer (BOT) projects as well as other projects in renewables.
Mytilineos’ IDR continues to reflect its diversified business profile and synergistic business model, self-sufficient metallurgy operations with low unit costs.
The rating also reflects its strong and growing market position in domestic electricity, which provides the group with sustainable cash flows and supports the upgrade.
A Mytilineos extraordinary general shareholders’ meeting will meet on Monday to approve the increase of a price cap in a share buyback programme, from 25 to 40 euros, and to approve the new corporate structure plan.