S&P Global Ratings estimated that Aluminum Corporation of China Limited (Chalco)’s credit quality will improve in the next 12 to 24 months and the firm’s leverage ratio will become better in 2021 due to rebounding aluminum prices and decreasing production costs.
Chalco’s EBITDA was expected to drop to RMB 12-13 billion this year from 2019’s RMB 14.5 billion, and that in 2021 will go up to RMB 15-16 billion. The weak EBITDA in 2020 was mainly due to inactive prices of primary aluminum and alumina in the first half of this year.
S&P Global Rating: Rebound in aluminum prices to improve Chalco’s credit quality
2 Sep 2020 15:37 reported by Joy Liu
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