S&P rates Industrias Metalurgicas notes B

Standard & Poor's said it assigned its B corporate credit rating to Industrias Metalurgicas Pescarmona SAIC y F. The agency also assigned a B rating to the company's upcoming issue for up to $250 million in 10-year amortizing notes.

The outlook is stable.

Proceeds from the notes are expected to be used to refinance debt and for working capital.

"The rating on IMPSA reflects the company's relatively high leverage and its exposure to the volatility inherent in the capital goods market and to the fluctuations of the economic activity in the main countries where IMPSA operates," S&P credit analyst Ezequiel Gomez said in a written statement. "The rating also incorporates the significant concentration of the company's backlog in a small number of large-scale projects."

Those factors are partly mitigated by the expected improvement in the issuer's financial profile as a result of the company's sizable backlog and significant extension of its debt maturity profile, once the refinancing process is closed, S&P said.

The stable outlook reflects S&P's expectations regarding the appropriate completion of its current main projects, which would contribute to rating stability, the agency said.

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