S&P assigns B+ to Cemex notes

S&P said it assigned a B+ rating Cemex SAB de CV’s planned subordinated perpetual, optionally deferrable green hybrid capital instrument.

“We arrive at our B+ issue-level rating on the proposed instrument by notching down from our BB+ issuer credit rating (ICR) on Cemex. The three-notch difference reflects our notching methodology, which deducts two notches for subordination because our long-term ICR on Cemex is speculative grade (it's below BBB-), and an additional notch for payment flexibility to reflect that the deferral of interest is optional,” S&P said in a press release.

The company intends to use the proceeds to finance eligible green projects, pay outstanding debt, fund capital management activities and for other corporate purposes.

The outlook is stable.

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