S&P cuts InterCement Brasil

S&P said it downgraded its ratings on InterCement Brasil SA and the senior notes issued by InterCement Financial Operations BV to CC from CCC-. The agency also lowered the national scale rating to brCC from brCCC-. The recovery rating on the notes remains unchanged at 3.

“We believe InterCement Brasil and its parent, InterCement Participacoes, won't make its next principal and interest payments before it concludes a plan of debt restructuring, which in our view will constitute an event of default. The parent has a bilateral bank loan amounting to $19.2 million due this month and, on June 8, a total R$650 million of payments are due. These comprise interest and principal on the debentures of both the parent and Brazilian subsidiary. The next interest payment date for the senior notes is July 17,” S&P said in a press release.

The outlook is negative.

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