Moody's confirms Camargo Correa Cimento

Moody's Investors Service said it confirmed the Ba3 global local-currency corporate family rating of Camargo Correa Cimento SA and the Ba3 foreign-currency rating of the $150 million senior unsecured notes due 2015 issued by Caue Finance Ltd. and guaranteed by Camargo Correa Cimento.

The outlook is stable. This concludes the review begun on Oct. 3.

The confirmation reflects the company's improved liquidity position following the repayment of debentures maturing earlier this month with proceeds from a capital injection made by Camargo Correa SA and dividends from Loma Negra CIASA, the agency said. The rating action also incorporates Moody's view of a positive trend in the Brazilian cement industry, as evidenced by increased sales volume and prices during the second half of 2007.

The agency said the ratings balance the company's relative small size, lack of transparency and low product and geographical diversity against its vertically integrated operations, proximity to its mines, efficient logistics, comfortable debt repayment schedule and adequate liquidity position.

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