Research Update: Befesa S.A. Assigned Prelim 'BB-' Rating; Outlook Stable; Befesa Zinc And Holdco Bilbao (Luxembourg) On Watch Positive

On Nov. 3, 2017, Spain-based steel dust and aluminum salt slags recycling services company Befesa S.A. (the parent company of Bilbao Luxembourg and Befesa Zinc) became publicly listed after completing an IPO, and it expects to complete a refinancing of its debt in the coming weeks. Following the change in ownership of the financial investor, Triton, and supported by the recent strong financial results, we have reassessed upwards the financial risk profile of the group, and view it now as significant. We are assigning a preliminary 'BB-' rating to Befesa S.A. The stable outlook reflects limited upside in the next 12 months. At the same time, we are placing our 'B' ratings on subsidiaries Befesa Zinc and Bilbao Luxembourg on

...+ On Nov. 3, 2017, Spain-based steel dust and aluminum salt slags recycling services company Befesa S.A. (the parent company of Bilbao Luxembourg and Befesa Zinc) became publicly listed after completing an IPO, and it expects to complete a refinancing of its debt in the coming weeks. + Following the change in ownership of the financial investor, Triton, and supported by the recent strong financial results, we have reassessed upwards the financial risk profile of the group, and view it now as significant. + We are assigning a preliminary '##-' rating to Befesa S.A. The stable outlook reflects limited upside in the next 12 months. + At the same time, we are placing our 'B' ratings on subsidiaries Befesa Zinc and Bilbao Luxembourg on CreditWatch positive. We expect to equalize the ratings on Befesa S.A. and the subsidiaries after the debt refinancing is completed....

Research Update