Press release
Algoma Steel Receives Upgrade from S&P Global Ratings
SAULT STE. MARIE, Ontario, Oct. 22, 2021 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (“Algoma”) (NASDAQ: ASTL; TSX: ASTL), a leading Canadian producer of hot
About this update from Algoma Steel Group Inc.
[{"type":"text","content":"SAULT STE. MARIE, Ontario, Oct. 22, 2021 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (“Algoma”) (NASDAQ: ASTL; TSX: ASTL), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced that S&P Global Ratings (“S&P”) has upgraded Algoma’s issuer credit rating to ‘B-’ from ‘CCC+’, with a stable outlook. S&P’s upgrade and outlook reflect Algoma’s strengthened liquidity position and access to capital markets following the recent completion of its merger with Legato Merger Corp., along with S&P’s expectation for Algoma to deliver improved operating results and higher cash flow generation. Rajat Marwah, Chief Financial Officer of Algoma, commented, \"We are thrilled to receive this S&P upgrade to our credit rating on the heels of Algoma’s recent return to the public equity markets. The S&P’s improved rating is a solid endorsement of our strategy of thoughtfully managing our balance sheet while investing in our people, operations and sustainability initiatives to build value in Algoma for all stakeholders.” About Algoma Steel Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. With a current raw steel production capacity of an estimated 2.8 million tons per year, Algoma’s size and diverse capabilities enable it to deliver responsive, customer-driven product solutions straight from the ladle to direct applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in Canada and Midwest USA and is the only producer of plate steel products in Canada. Algoma’s mill is one of the lowest cost producers of hot rolled sheet steel (HRC) in North America owing in part to its state-of-the-art Direct Strip Production Complex (“DSPC”), which is the newest thin slab caster in North America with direct coupling to a basic oxygen furnace (BOF) melt shop. Algoma has achieved several meaningful improvements over the last several years that are expected to result in enhanced long-term profitability for the business. Algoma has upgraded its DSPC facility and recently installed its No. 2 Ladle Metallurgy Furnace. Additionally, Algoma has cost cutting initiatives underway and is in the process of modernizing its plate mill facilities. Today Algom...