S&P ups InterCement Brasil

S&P said it upgraded InterCement Brasil SA and its issue-level ratings to B from CCC and its national scale rating to brA from brB-.

“Thanks to a strong rebound in revenue and profitability in the second half of 2020, InterCement's debt to EBITDA dropped to 4.8x for the full year from 5.8x in 2019. Given the growing volumes in early 2021 as well, we now expect the company's leverage to fall below 4x in 2021 and 2022,” S&P said in a press release.

“During 2020, the company turned its focus on selling to smaller clients and in regions with milder competition, leading to higher average prices than in past years. This strategy paid off as demand grew solidly due to high levels of home renovations amid the pandemic, the government stimulus, and homebuilders' increasing activity thanks to record low interest rates,” the agency said.

The outlook is stable.

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