Fitch rates Cemex notes B+

Fitch Ratings said it assigned ratings of B+ with recovery rating of 3 to the proposed senior secured notes to be issued by Cemex Espana. These notes consist of a euro-denominated note that matures in 2017 and is callable after four years, and a dollar-denominated note maturing in 2020, which is callable after five years. These notes will have the same security package as the bank debt subject to the financing agreement as well as other capital markets debt.

The notes are unconditionally guaranteed by Cemex, SAB de CV and its subsidiaries Cemex Mexico, SA de CV and New Sunward Holding BV.

The ratings take into consideration the company's strong global business position as an integrated cement player and its ability to continue to generate free cash flow during the sharp contraction in its key markets, Fitch said.

The ratings continue to reflect the support the company receives from its key banks, the agency said.

Balanced against these credit strengths are the high level of leverage and the below-average free cash flow prospects for three of its key markets in the near term, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.