S&P rates St. Mary's Cement notes BB+

S&P said it assigned its BB+ issue-level rating to St. Mary's Cement Inc.'s proposed senior unsecured notes for up to $500 million (subjected to a minimum of $300 million) due April 5, 2041, at an annual rate of 7¼%.

The notes will be offered in exchange for Votorantim Cimentos International SA's (VCI: not rated) 2041 bonds.

S&P also assigned the recovery rating of 3, indicating an expectation of a meaningful recovery on the notes (rounded estimate 65%) under a hypothetical default scenario.

The debt rating reflects the credit quality of St. Marys' ultimate parent, Votorantim Cimentos SA (VCSA; BB+/stable/--), which will unconditionally guarantee the notes. The guarantee ranks pari passu to VCSA's other senior unsecured debt, S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.