Fitch rates Cemex note BBB

Fitch Rating said it assigned a BBB rating to the up to $750 million of fixed-to-floating perpetual callable debentures to be issued by C8 Capital (SPV) Ltd. and placed the rating on Rating Watch negative.

The issuer is a special purpose vehicle incorporated with limited liability in the British Virgin Islands and its only assets consist of up to $750 million of perpetual dual-currency notes issued by New Sunward Holding Financial Ventures BV, which will be purchased by C8 Capital with proceeds from the debentures. New Sunward is, in turn, an indirect wholly owned special-purpose subsidiary of Cemex, SAB de CV, the ratings of which are on Rating Watch negative.

Proceeds from the dual-currency notes will be used primarily to repay debt of Cemex and its subsidiaries and for general corporate purposes.

The agency said the rating is based on the credit quality of Cemex and its subsidiaries Cemex Mexico and New Sunward as guarantors and is equivalent to Cemex's foreign- and local-currency issuer default ratings.

Although coupons of the perpetual debentures are indefinitely deferrable, Fitch said it considers the likelihood of deferral remote given Cemex's strong financial performance and credit profile.

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