Nordic Credit Rating said today that it had raised the senior unsecured issue rating of Norway-based salmon farmer SalMar ASA to 'BBB+' from 'BBB', in accordance with its revised issue rating criteria. The rating action reflects our expectations that the company will keep its gross secured debt to EBITDA below 2.0x on a sustained basis. Gross secured debt to NCR-adjusted EBITDA stood at 2.3x on a last 12-month basis as of 31 Mar. 2023 (including less than five months of earnings from NTS ASA and Norway Royal Salmon ASA). We expect gross debt to decrease due to the proceeds from the recent sale of Frøy ASA and project gross secured debt to NCR-adjusted EBITDA of 1.3x at 31 Dec. 2023. At the same time, the 'BBB+' long-term issuer rating on the company was affirmed. The outlook is stable. The ratings are no longer under criteria review.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB+ | BBB+ |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N2 | N2 |
| Senior unsecured issue rating: | BBB+ | BBB |
Contacts:
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
The methodology documents used for this rating are NCR's Corporate Rating Methodology published on 8 May 2023, NCR's Rating Principles published on 24 May 2022 and NCR's Group and Government Support Rating Methodology published on 18 Feb. 2022. For the full regulatory disclaimer please see the rating report.