S&P cuts InterCement Brasil view to negative

S&P said it affirmed its BB- long-term corporate credit rating on InterCement Brasil SA and lowered the national scale rating to brA- from brA.

The outlook was revised to negative from stable on both rating scales.

S&P said it is also affirming its issue level rating at BB-. The recovery rating on these notes remains 3, indicating that we expect meaningful (55%) recovery in a hypothetical default scenario.

“The outlook revision reflects our view that InterCement Participações must execute significant monetization events in order to reduce its high leverage and comply with the financial covenants that could dramatically change its liquidity position in the case of a breach,” S&P said in a news release.

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