One step closer to investment grade MYTILINEOS as S&P upgraded the company’s rating to BB in its report, maintaining a positive outlook (may further upgrade within 6-12 months) based primarily on a more than doubling of the company’s profitability in 2022 by 2021, as well as in the proper management of increased cash flows to better diversify the MYTILINEOS portfolio.

S&P notes that the positive outlook as a result of the new level of profitability and lower leverage of MYTILINEOS, which is now growing into an even larger and more diversified company, provides room for another boost if the company implements its base plan. S&P.

According to the rating agency, the profitability of MYTILINEOS for 2022 will be between 750 and 800 million euros, and in 2023 and 2024, despite the possibility of an impending European recession, it will exceed 900 million. euros and may even reach 1 billion euros in terms of EBITDA.

For S&P analysts, a significant contribution to this new level of profitability is ~1bn. euro EBITDA in the coming years is expected to have both renewables (in and outside Greece) and the rebranded former SES sector.

Equally important is the fact that, coupled with the growth in profitability in subsequent years, MYTILINEOS managed to maintain a particularly high leverage ratio, which S&P consistently rates below 2.0x, thereby confirming the long-term stability of its lending company.

In terms of the company’s liquidity, the rating agency emphasizes its adequacy, and in terms of possible future refinancing needs, S&P has full confidence in the company’s management due to its ability to take timely and effective measures even in less favorable funding conditions.

Analysts are reminded that rating upgrades to maintain a positive outlook are not common. Most of the time after such a move, the forecast becomes stable (this is no less important given what could happen before the end of next year).