Fitch rates Impsa notes B

Fitch Ratings said it assigned a B rating to Industrias Metalurgicas Pescarmona SAIC Y F (Impsa) proposed one-year $65 million issuance notes due 2009 with a recovery rating of RR4. The issuer has foreign- and local-currency issuer default ratings of B.

The outlook is stable.

The rating is supported by sustained global demand for hydroelectric and wind technology and equipment, Fitch said, along with geographic revenue and asset diversification, and its ability to generate funds in hard currency.

Balanced against these strengths are the company's high leverage, its sound capital needs to finance projects' developments and the concentration of its cash flow in a few large projects in developing countries, the agency said.

For the 12 months ended Jan. 31, the company had a total debt-to-EBITDA ratio of 5.2 times and a net debt-to-EBITDA ratio of 3.1 times.

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