S&P: Camargo, subsidiaries views to positive

Standard & Poor's said it affirmed its BB ratings on Camargo Correa SA. At the same time, the agency affirmed its BB ratings on cement subsidiaries InterCement Brasil SA and Cimpor Cimentos de Portugal, SGPS, SA and revised the outlook on all entities to positive.

S&P said the action is based on its expectation that Camargo's credit metrics will improve in the next few years, potentially becoming more aligned with a "significant" financial risk profile from its current "aggressive."

Current leverage ratios went up significantly after the debt-financed acquisition of Cimpor, but the company should still benefit from the consolidation and synergies in its cement business through InterCement. The agency sad it assumes debt to EBITDA to 5x from 4x in 2013 and 2014 (net debt to EBITDA close to 3.5x) and funds from operations to net debt trending to 20%.

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