S&P Global Ratings upgraded Century Aluminum Co. to 'B' from 'B-' on Wednesday. The upgrade reflects improved credit metrics.
The ratings firm expects the company to reduce debt to EBITDA below 2x by fiscal 2026. Strong earnings and cash flow are anticipated.
Century improved its debt to EBITDA to 2.6x from 3.4x a year earlier. Higher aluminum prices and regional premiums drove the improvement.
S&P updated its aluminum price assumptions to $3,300, $3,000, and $2,800 per metric ton for 2026, 2027, and 2028, respectively.
The company restarted about 90 pots at Mount Holly in April 2026. It also resumed production at the second potline in Iceland.
U.S. tariffs and tax credits support domestic production. This benefits Century, which generates about 60% of revenue in the U.S.
The U.S. Midwest premium hit a record high of 118 cents per pound in May 2026. That's about 500% higher than 2024 levels.
Emirates Global Aluminum and Century announced a joint venture in February 2026. It aims to build the first new U.S. smelter in 40 years.
S&P expects Century to more than double free cash flow this year. This would support debt reduction and investment plans.
