Research Update: French Mineral Producer Imerys Affirmed At 'BBB-' As It Cuts Costs To Offset COVID-19-Related Slump In Demand

We estimate that French mineral producer Imerys' revenue for the 2020 financial year could drop by 10%-15% to €3.7 billion-€3.8 billion because of the recession caused by the COVID-19 pandemic. The company is implementing contingency plans which should partly offset the decline in revenue this year. We are therefore affirming our 'BBB-' long-term issuer credit rating on Imerys. The stable outlook indicates that we forecast that FFO to debt will remain 20%-30% over the next two years. Despite the recessionary macroeconomic environment caused by the COVID-19 pandemic, the company has demonstrated strong financial policy commitment to an investment-grade rating. We consider rating leeway at the 'BBB-' level as limited. The stable outlook indicates that we expect FFO to debt to

...- We estimate that French mineral producer Imerys' revenue for the 2020 financial year could drop by 10%-15% to 3.7 billion-3.8 billion because of the recession caused by the COVID-19 pandemic. - The company is implementing contingency plans which should partly offset the decline in revenue this year. - We are therefore affirming our '###-' long-term issuer credit rating on Imerys. - The stable outlook indicates that we forecast that FFO to debt will remain 20%-30% over the next two years. Despite the recessionary macroeconomic environment caused by the COVID-19 pandemic, the company has demonstrated strong financial policy commitment to an investment-grade rating. We consider rating leeway at the '###-' level as limited....

Research Update