Befesa's Credit Rating Upgraded to BB+ by S&P

Befesa S.A., a leader in recycling services for steel dust and aluminum salt slags, has seen its long-term issuer credit rating upgraded by S&P Global Ratings from "BB" to "BB+" with a stable outlook. The company's €650 million term loan and €100 million credit facility also received upgrades.

S&P's decision was influenced by Befesa’s strong operational performance, aided by favorable zinc market conditions and recent growth projects. Increased recycling volumes in Europe, driven by new electric arc furnace capacities, further support Befesa's prospects.

Befesa has made strides in reducing its net leverage, attributed to earnings growth and disciplined capital allocation. With major investments completed, the company is poised for ongoing deleveraging and increased capital flexibility. Rafael Pérez, CFO, highlights Befesa's strategic execution and the recent extension of its zinc hedging programme as key factors in achieving a robust financial profile.