Fitch upgrades InterCement

Fitch Ratings said it upgraded InterCement Participacoes SA's long-term local- and foreign-currency issuer default ratings to CCC from C. Fitch also boosted InterCement's 2024 notes to CCC/RR4 from C/RR4 and its national scale rating to B-(bra) from C(bra).

“The upgrade reflects the improvement in the Brazilian cement market, which has allowed InterCement to bolster its EBITDA generation in the country to $125 million in 2020 from $75 million in 2019. The company's EBITDA in this market should grow to more than $150 million in 2021, which, combined with EBITDA generated by African subsidiaries should allow the company to continue to service interest payments on its debt,” Fitch said in a press release.

The upgrade also reflects InterCement’s better liquidity profile after the 2020 bank debt refinancing, which pushed back debt amortizations on $900 million of debt until 2023, the agency said.

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