- Algoma Steel (ASTL) announced its issuer credit rating has been upgraded by S&P Global Ratings
- The Ontario-based company’s issuer credit rating was raised to ‘B-’ from ‘CCC+’ with a stable outlook
- S&P’s upgrade and outlook reflect Algoma’s strengthened liquidity position and access to capital markets following the recent completion of its merger with Legato Merger
- The upgraded rating also accounts for an expectation of Algoma delivering improved operating results and higher cash flow generation
- Algoma Steel is down 0.70 per cent, trading at USD $11.27 at 12:36 pm ET
Algoma Steel (ASTL) announced its issuer credit rating has been upgraded by S&P Global Ratings.
The Ontario-based company’s issuer credit rating was raised to ‘B-’ from ‘CCC+’ with a stable outlook.
S&P’s upgrade and outlook reflect Algoma’s strengthened liquidity position and access to capital markets following the recent completion of its merger with Legato Merger Corp.
The upgraded rating also accounts for an expectation of Algoma delivering improved operating results and higher cash flow generation.
“We are thrilled to receive this S&P upgrade to our credit rating on the heels of Algoma’s recent return to the public equity markets. The S&P’s improved rating is a solid endorsement of our strategy of thoughtfully managing our balance sheet while investing in our people, operations and sustainability initiatives to build value in Algoma for all stakeholders,” said Algoma Chief Financial Officer Rajat Marwah.
Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. With a current raw steel production capacity of an estimated 2.8 million tons per year.
The company is a supplier of steel products to customers in Canada and Midwest United States and is the only producer of plate steel products in Canada.
Algoma Steel is down 0.70 per cent, trading at USD $11.27 at 12:36 pm ET.