Fitch rates Impsa notes B

Fitch Ratings said it assigned a B rating with a recovery rating of RR4 to the proposed $250 million amortizing notes due 2014 of Industrias Metalurgicas Pescarmona SAIC Y F (Impsa).

The outlook is stable.

Proceeds will be used to repurchase $134 million of the company's series 8 and 11 bonds, to cancel its series 9 and 12 bonds, to cancel $100 million of private placements and bank loans and to repay other bank debt.

The agency said Impsa's B foreign- and local-currency issuer default ratings are supported by strong global demand for hydroelectric and wind technology and equipment, Impsa's geographic revenue and asset diversification and its ability to generate funds in hard currency.

Balanced against these strengths are the company's high leverage, the concentration of its cash generation in a few large projects and the correlation of Impsa's cash flow with the strength of the local economies in its key markets - namely Brazil, Venezuela, Colombia and Malaysia, Fitch said.

As of Jan. 31, 2007, Impsa had a net debt-to-EBITDA ratio of 4.5 times.

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