|
|
 |
|
Viewing report
|
|
|
|
Aperam S.A.
Standard & Poors, April 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
Diversified production base and profitable operations in Brazil. Favorable maturity profile. Moderate financial policy. The stainless steel industry's cyclicality and high volatility. Volatile working capital needs. Significant leverage. The rating on stainless steel producer Aperam S.A. reflects Standard & Poor's Ratings Services' view of its business risk profile as 'fair' and its financial risk profile as 'significant.' Aperam was spun off from ArcelorMittal (BBB-/Stable/A-3) in January 2011. Our assessment of the business risk profile as 'fair' is based on the stainless steel industry's cyclicality and high volatility, stemming from cyclical demand for products and periodic overcapacity. We also note that at this point Aperam has only limited presence in nickel alloys and specialty products, which we regard as more advantageous...
Companies mentioned in this report are: Aperam S.A.
Action: Review
|
|
|
|
