Credit rating agency Standard & Poor’s (S&P) sets the outlook for Advanced Metallurgical Group (AMG) at negative. That was rather stable. S&P thus indicates that the creditworthiness of the metal specialist can be lowered over time. S&P still holds the same credit rating at BB-.
According to S&P, the deteriorated outlook is due to the relatively high debt burden in relation to the operating result. This has been increased by a large depreciation on the inventory due to volatile prices for vanadium. S&P expects that ratio to continue to increase in the coming year, despite AMG’s steps to protect itself against price fluctuations.