hard · Corporate Credit Analysis
Horizon Mining is a cyclical iron ore producer with peak-cycle EBITDA of $500M and trough-cycle EBITDA of $200M. The firm currently holds $1.4B in total debt.
If the rating agency anchors on a mid-cycle EBITDA of $350M, what is the through-the-cycle (TTC) leverage and the likely rating category?
- 4.00x, BB Category
- 7.00x, CCC Category
- 4.67x, B Category
- 2.80x, BBB Category
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