Fitch rates Cemex notes BB-

Fitch Ratings said it assigned expected ratings of BB- with recovery rating of RR3 to Cemex SAB de CV’s proposed dollar-denominated notes due in 2025 and euro notes due in 2023.

The proceeds from the notes will be used for general corporate purposes, including the refinancing of Cemex’s $744 million floating-rate notes due September 2015, Fitch said, and repurchase of a portion of the company’s outstanding 2018 and 2020 notes.

The guarantors for the notes will be Cemex Mexico, SA de CV, Cemex Concretos, SA de CV, Empresas Tolteca de Mexico, SA de CV, New Sunward Holding BV, Cemex Espana, SA, Cemex Asia BV, Cemex Corp., Cemex Finance LLC, Cemex Egyptian Investments BV, Cemex Egyptian Investments II BV, Cemex France Gestion (SAS), Cemex Research Group AG, Cemex Shipping BV and Cemex UK.

The notes will enjoy the same collateral package as the creditors under Cemex’s facilities agreement, Fitch said.

The outlook is stable.

Cemex has a foreign- and local-currency issuer default rating of B+, senior secured notes rating of BB- with recovery rating of RR3, national scale long-term rating of BBB(mex), senior unsecured certificates rating of BBB(mex) and national scale short-term rating of F3(mex).

The ratings reflect the company’s strong and diversified business position, Fitch said.

The company is one of the largest producers of cement, ready-mix and aggregates in the world, the agency said.

The company’s product- and geographic-diversification offset some of the volatility associated with the cyclical cement industry, Fitch said.

The ratings remain constrained by the company’s high leverage, the agency added.

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