Befesa S.A. S&P upgraded Befesa’s rating to BB+ following strong operating performance and deleveraging

PRESS AND INVESTOR ANNOUNCEMENT

S&P upgraded Befesa’s rating to BB+ following strong operating performance and deleveraging

Luxembourg, 29 September 2026 – Befesa S.A. (“Befesa”), the European market leader in steel dust and aluminium salt slags recycling services, has received an upgrade of its long-term issuer credit rating by S&P Global Ratings from “BB” to “BB+”, with a stable outlook. The ratings on Befesa’s €650 million term loan B and €100 million revolving credit facility were also upgraded from “BB” to “BB+”.

According to S&P Global Ratings, the upgrade reflects Befesa’s strong operating performance, supported by favourable zinc market conditions and the increasing contribution from recently completed growth projects. S&P also expects higher recycling volumes in Europe as new electric arc furnace (EAF) capacity comes online, providing further support to Befesa’s operating performance over the coming years.

The upgrade follows the continued strengthening of Befesa’s financial profile and sustained deleveraging from peak levels. Net leverage has declined consistently over recent quarters, supported by earnings growth, disciplined capital allocation and strong cash flow generation. With Befesa’s major growth investments completed and capital expenditure declining, the Company is entering a phase in which sustained earnings and cash flow generation can support further deleveraging and provide greater flexibility for capital allocation.

Rafael Pérez, CFO of Befesa, commented: “We are very pleased with S&P’s upgrade of Befesa’s credit rating to BB+. It reflects our strong operating performance, the resilience of our business model and the successful execution of our strategy. We are well positioned to deliver a record year in EBITDA and cash flow while continuing to strengthen our financial profile. Combined with the extension of our zinc hedging programme through Q3 2029 at record-high levels, this provides significant earnings and cash flow visibility and supports further deleveraging, our medium-term objectives and greater capital allocation flexibility.”

The stable outlook reflects S&P’s expectation that supportive market conditions and Befesa’s strong market positions will enable the Company to maintain robust operating performance, generate consistently positive free operating cash flow and preserve a prudent financial profile.

 

About Befesa

Befesa is a leading player in the circular economy, providing environmental, regulated services to the steel and aluminium industries with facilities located in Germany, Spain, Sweden, France, as well as in Turkey, South Korea, China and the US. Through its two business units, Steel Dust and Aluminium Salt

Slags recycling services, which are a critical part of the circular economy, Befesa manages and recycles

around 1.9 million tonnes of residues annually, with a production of around 1.7 million tonnes of new materials, which Befesa reintroduces in the market, reducing the consumption of natural resources. Further information can be found on the company’s website: www.befesa.com

 

Investor Relations

Email: irbefesa@befesa.com

Phone: +49 2102 1001 0

 

Media Relations

Richard Rigby

Email: richard.rigby@kekstcnc.com

Phone: +44 7970 767607