S&P downgrades CemPro

S&P said it lowered the long-term corporate credit and issue-level ratings on Cementos Progreso SA (CemPro) to BB- from BB to parallel the long-term sovereign foreign-currency rating on the Republic of Guatemala.

The agency also revised the outlook to stable from negative.

The downgrade follows a similar rating action on the Republic of Guatemala.

S&P said it believes it is unlikely that CemPro would overcome a sovereign default, which prevents a rating on the company higher than the sovereign long-term foreign-currency rating.

Ultimately, if a sovereign foreign-currency default occurs, there is a high likelihood that CemPro would default as well because the company's operations are highly correlated to Guatemala's macroeconomic conditions, the agency said.

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