Creditreform Rating AG has withdrawn the addition Watch NEW for the SME Issuer Rating of Metalcorp Group S.A. and assigned a negative outlook.
The SME Issuer Rating now stands at BB- / negative. The impact of COVID-19 has remained limited due to the risk averse business model of the
Group. However, due to lower market prices, reduced turnover, especially from the automotive sector and the aluminium production, which was
below budget, the revenues and operating results in the first half of 2020 were considerably lower than in the same period in the prior year. The
operating margin remained stable. The EAT however, decreased significantly due to higher interest expenses and a negative impact from foreign
exchange effects. We expect that the Group will not meet its forecast for 2020, something we still expected during our last full-rating update in
February 2020. The investments in the mining operations, including the corresponding infrastructure investments, were higher in the first half of
2020 than we recently expected. Additionally, we continue to see a difficult market environment, with many uncertainties, which might hamper
the Group´s recovery in the second half of the business year and further contributes to the negative outlook.