one step ahead of her investment grade is now Mytilene after Fitch Ratings upgraded the credit rating to ‘BB+’. Mytilineos, according to the rating agency in the corresponding report, in recent years has managed to significantly strengthen its position both on the world map, renewable energy sources (RES), due to its acceleration energy transitionas well as in the domestic electricity market, while maintaining high profitability in the metallurgical sector.

HOUR Fitch Ratings expects sustained strong performance in 2023, driven by an increase in the contribution of the energy sector and especially the acceleration of renewable energy projects in Greece and abroad, leading to outpacing the M Renewables sector of Mytilineos. The rating also reflects, in Fitch’s view, its strong and growing position in the domestic electricity market, which provides strong cash flow and supports modernization as the energy sector enters a less liquid but resilient period. Of particular note is the new natural gas power plant (CCGT 826 MW), which, once commissioned, will significantly increase the company’s market share.

Fitch Ratings characterizes the listed company’s operating model as well differentiated and significant synergies between its lines of business.

At the same time, the steel industry’s vertical production model is expected to provide a significant competitive advantage, placing Mytilineos among the world’s lowest cost aluminum producers.

In terms of the listed company’s liquidity, Fitch characterizes it as healthy as it explains that the company had €1bn of free cash at the end of 2022, which the company believes is more than enough to cover short-term repayments of its liabilities.

“We forecast EBITDA of over €900 million from 2023, supported by expansion in energy and natural gas activities, as well as higher EBITDA with reduced volatility in the construction sector. Therefore, we expect Mytilineos to be able to maintain net EBITDA leverage of around 1.5x over the 2023-2026 period, supporting the rating upgrade,” analysts at home said.

It is noted that in fiscal year 2022 Mytilineos recorded an increase in net profit after deducting minority rights by 187% to 466 million euros, compared with 162 million in 2021. Earnings before taxes, interest and amortization (EBITDA) increased by 130% to 823 million euros. million, against 359 million in 2021. Turnover more than doubled (+137%) to 6.306 billion, from 2.664 billion a year earlier. At the same time, the group reduced its net borrowings to 716 million in 2022 from 803 million at the end of 2021. It is recalled that S&P (“BB” from “BB-“) also upgraded Mytilineos in previous months, while maintaining a positive mood.