Our Impactful Delivery for a client in the Metal Industry.

Company Background
Incorporated in 2019, the company is engaged in metal commodity trading, aluminum and copper scrap processing, and copper wire manufacturing. Recently, it has expanded its operations, transitioning from a trading-focused business to a manufacturing-driven model.

Challenge
The company struggled to achieve an investment-grade credit rating due to its historical focus on trading, which limited its operational track record in manufacturing. This perception constrained its ability to secure favourable financing terms.

Our Approach
Finmen Advisors assisted the client in selecting the right rating agency and effectively presenting its business model, core strengths, and technical expertise. We addressed concerns regarding historically low profit margins by demonstrating how revenue growth, a recently completed capex, and the shift from trading to manufacturing would enhance future profitability. Additionally, we conducted a detailed peer benchmarking analysis to reinforce the company’s competitive positioning.

Impact
Our strategic intervention led to a three-notch credit rating upgrade from BB- to BBB- (investment grade). As a result, the company was able to reduce collateral requirements, secure higher fund-based limits from banks, and improve overall financial flexibility, positioning it for sustained growth.