S&P lowers InterCement Brasil

S&P said it lowered its global scale ratings to B- from B and its national scale rating to brBBB- from brA InterCement Brasil SA. The agency also placed all ratings on CreditWatch with negative implications.

“The downgrade of InterCement reflects our expectation that its revenue and earnings will likely contract in 2020 due to the Covid-19 outbreak and the resulting slowdown in economic activity. This will pressure the company's credit metrics, with debt to EBITDA likely ranging from 7x to 12x, depending on the length and severity of the economic slowdown,” said S&P in a press release.

InterCement started talks in the second half of last year to extend its debt maturities by refinancing its debentures but hadn't completed them yet. “We now believe refinancing conditions will be more difficult over the next months, which are also reflected in the lower rating and CreditWatch negative placement,” the agency said.

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