S&P hikes Cemex

S&P said it upgraded its ratings for Cemex SAB de CV and its rated subsidiaries to BBB- from BB+. The agency also raised the long-term national scale issuer credit rating on Cemex to mxAA+ from mxAA. Concurrently, S&P raised the global and national scale issue-level ratings on the company's senior unsecured notes to BBB- from BB+ and to mxAA+ from mxAA, respectively, and on its perpetual bonds to BB from B+.

“A combination of EBITDA growth and debt reduction have driven lower leverage. Adjusted leverage and FFO to debt have improved from over 5x and 10.8%, respectively, in 2019 to 2.8x and 24.3% at year-end 2023. In 2023, Cemex reached record-high adjusted EBITDA of close to $3.4 billion, substantially higher than the $2.4 billion posted in 2019, while its adjusted debt fell to about $9.6 billion in 2023 from $13.2 billion in 2019,” S&P said in a press release.

The agency said it projects Cemex’s adjusted leverage of 2.6x and FFO to debt of 20% in 2024, and 2.3x and 29%, respectively, by year-end 2025. It also expects revenue growth of nearly 4% in 2024 and 6% in 2025.

The outlook is stable.

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