Fitch affirms Cemex

Fitch Ratings said it affirmed Cemex, SAB de CV's foreign-currency issuer default rating at B, local-currency issuer default rating at B, long-term national-scale rating at BB-(mex), five billion in Mexican peso certificados bursatiles program at BB- (mex), 30 billion in Mexican peso programa dual revolvente de certificados bursatiles program at BB-(mex), senior unsecured debt obligations at B+ with recovery rating of 3, unsecured debt issued through the certificados bursatiles program at BB-(mex), short-term national-scale rating at B (mex), 2.5 billion in Mexican peso short-term portion of programa dual revolvente de certificados bursatiles program at B (mex).

The agency also affirmed Cemex Espana SA's issuer default rating at B, senior unsecured debt obligations at B+ with recovery rating of 3; Rinker Materials Corp.'s $150 million senior unsecured notes due 2025 at B+ with recovery rating of 3.

Fitch also said it removed all ratings of Cemex and its subsidiaries from rating watch evolving and has assigned a stable outlook.

The affirmations and outlook revision reflect the successful refinancing of about $15 billion of bank and private placement debt. The structure of Cemex's new amortization schedule minimizes the risk of a near-term default by Cemex and should allow the company to further pursue its plan to strengthen its balance sheet and de-leverage the company over the next few years by using free cash flow, an equity issuance as well as selling additional asset to pay down debt, Fitch said.

The ratings remain at the B level due to the high leverage that remains at Cemex, the agency 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.