The upgrade is driven by our expectations of the group's solid operating performance in 2023 and beyond, characterised by enlarged operations due to growing exposure to the more stable and resilient power & gas segment, and expected increased earnings from execution of build-own-transfer (BOT) projects as well as other projects in renewables.
Moreover, we expect a significant and sustained improvement in EBITDA net leverage towards 1.5x by 2024 from 2.0x-3.0x in 2019-2021.
MYTIL's IDR continues to reflect its diversified business profile and synergistic business model, self-sufficient metallurgy operations with low unit costs. The rating also reflects its strong and growing market position in domestic electricity, which provides the group with sustainable cash flows and supports the upgrade.
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