Research Update: Luxembourg-Based Befesa Downgraded To 'BB' On Lower-Than-Expected Profitability And Higher Leverage; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Luxembourg-Based Befesa Downgraded To 'BB' On Lower-Than-Expected Profitability And Higher Leverage; Outlook Stable

Research Update: Luxembourg-Based Befesa Downgraded To 'BB' On Lower-Than-Expected Profitability And Higher Leverage; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Luxembourg-Based Befesa Downgraded To 'BB' On Lower-Than-Expected Profitability And Higher Leverage; Outlook Stable
Published May 22, 2024
8 pages (3289 words) — Published May 22, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

The recent guidance of European steel dust recycler Befesa for 2024 alludes to another year with elevated credit metrics. Amid cost pressures and lower demand in 2023, the company did not use its financial levers to offset the weak cash flows. As a result, we lowered our ratings on Befesa and its secured debt to 'BB' from 'BB+'; the recovery rating remains at '3', indicating our expectations of meaningful recovery in the event of a default. The stable outlook reflects our assumption of normalized costs and contributions from various initiatives that would allow the company to build some headroom under our rating. The stable outlook reflects our assumption of normalized costs and contributions from Befesa's various initiatives that would allow

  
Brief Excerpt:

...- The recent guidance of European steel dust recycler Befesa for 2024 alludes to another year with elevated credit metrics. - Amid cost pressures and lower demand in 2023, the company did not use its financial levers to offset the weak cash flows. - As a result, we lowered our ratings on Befesa and its secured debt to '##' from '##+'; the recovery rating remains at '3', indicating our expectations of meaningful recovery in the event of a default. - The stable outlook reflects our assumption of normalized costs and contributions from various initiatives that would allow the company to build some headroom under our rating....

  
Report Type:

Research Update

Issuer
Befesa S.A.
GICS
Environmental & Facilities Services (20201050)
Sector
Global Issuers
Country
Luxembourg
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Luxembourg-Based Befesa Downgraded To 'BB' On Lower-Than-Expected Profitability And Higher Leverage; Outlook Stable" May 22, 2024. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Luxembourg-Based-Befesa-Downgraded-To-BB-On-Lower-Than-Expected-Profitability-And-Higher-Leverage-Outlook-Stable-3178363>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Luxembourg-Based Befesa Downgraded To 'BB' On Lower-Than-Expected Profitability And Higher Leverage; Outlook Stable May 22, 2024. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Luxembourg-Based-Befesa-Downgraded-To-BB-On-Lower-Than-Expected-Profitability-And-Higher-Leverage-Outlook-Stable-3178363>
  
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