Leading European steel dust recycler Befesa on June 16 announced it would acquire U.S.-based recycler American Zinc Recycling (AZR) for $450 million, becoming a global player. Likely improved results in 2021 and the decision to fund the AZR acquisition mostly with equity should result in comfortable credit metrics. We have therefore raised our long-term issuer credit rating on Befesa to 'BB+', affirmed our 'BB+' issue ratings on the secured debt, and revised the recovery rating on the debt to '3' from '2'. The stable outlook reflects supporting market conditions we see in the coming 12 months which should translate into improved profitability and build-up of some headroom under the rating. The stable outlook reflects the supporting market conditions we see
