S&P cuts InterCement Brasil

S&P said it lowered its ratings for InterCement Brasil SA to SD, selective default, from CC and its national scale issuer rating to SD from brCC. The issue-level rating on the 2024 senior unsecured notes remains unchanged at CC with a 3 recovery rating.

Last week, InterCement reported it reached an agreement with debenture holders for a deferral of the payment of principal and interest due on June 8 totaling R$500 million. Its parent, InterCement Participacoes SA, made only a partial payment of the R$151 million interest due on the same date.

“In our view, the agreement is in line with the company's strategy to preserve liquidity, while it continues working on a more general debt restructuring. Following the deferrals, the next payment is about $16 million of interest on the group's senior notes. We believe the payment could be paid on the due date, but the CC rating on the senior notes still reflects a high risk of nonpayment or a debt exchange,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.