S&P rates Impsa bonds B

Standard & Poor's said it assigned a B senior unsecured debt rating to Industrias Metalurgicas Pescarmona SAICy F''s (Impsa) $65 million short-term bonds due 2009, and affirmed its B long-term corporate credit rating.

The outlook is stable.

Proceeds will be used to fund working capital, particularly for the startup of a new wind power equipment manufacturing facility in Brazil.

The agency said it expects the issuer's total debt-to-EBITDA ratio to fall to 3.5 times in fiscal 2009, compared with 5.3 times as of Jan. 31.

Ratings reflect the company's high leverage, its exposure to the volatile capital goods industry and significant concentration of the company's backlog in a small number of large-scale projects, according to S&P.

Those factors are partially mitigated by an adequate competitive position, as well as some geographic diversification, the agency said.

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