Fitch rates Impsa notes B

Fitch Ratings said it assigned Industrias Metalurgicas Pescarmona SAIC Y F (Impsa) issuer default ratings of B on its foreign- and local-currency and ratings of B and A-(arg) to the company's proposed $250 million amortizing notes due in 2017.

The notes also have a recovery rating of RR4, which is consistent with expected recovery of 30% to 50% in the event of a default. Fitch affirmed the national scale rating at A-(arg).

The outlook is stable.

The credit ratings are supported by the company's revenue and asset diversification, its ability to generate funds in hard currency and the strong global demand for hydroelectric and wind technology and equipment, Fitch said.

The ratings also reflect the company's high leverage, the concentration of its cash generation in a few large projects and the correlation of cash flow with the strength of the local economies in its key markets of Brazil, Venezuela, Colombia and Malaysia, the agency said.

As of January 31, the company had a net debt-to-EBITDA ratio of 4.5 times.

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