Moody's: Intercement on watch

Moody's Investors Service said it placed the Ba3 global scale corporate family rating of Intercement SA and all related debt ratings under review for possible downgrade.

At the same time, the agency said the Ba3/Aa2.ar ratings of Loma Negra, the company's subsidiary in Argentina, were also placed under review for possible downgrade.

The agency placed under review the Ba3 foreign currency rating on Caue Finance Limited SA's $150 million senior unsecured global notes due 2015 and the Ba3 foreign currency rating /Aa2.ar national scale rating on Loma Negra CIA SA's $100 million senior unsecured global bonds due 2013.

The agency said the downgrade reviews were precipitated by a public offer filed by Intercement Austria Holding GmbH, to acquire all of the outstanding common shares of Cimpor - Cimentos de Portugal, SGPS, SA.

According to Moody's, if the proposed transaction is consummated as proposed, it will transform the company's credit profile, increasing scale and geographic diversification, but also adding a significant debt burden. Given the potential deterioration in key credit metrics and the increased leverage position, the conclusion of the review could result in more than a one-notch downgrade, the agency said.

© 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.