Moody's: Italcementi notes Ba2

Moody's Investors Service said it assigned a definitive Ba2 rating to €350 million of 6 1/8% senior guaranteed notes due 2018 issued by Italcementi Finance SA. Italcementi SpA's Ba2 corporate family rating remains unchanged with a negative outlook.

The proceeds of the notes will be used to lengthen Italcementi's maturity profile and to further diversify the group's funding mix with a view to increase the share of capital market debt.

The agency said the Ba2 rating of the Italcementi group reflects the group's adequate business profile with geographically diversified operations and strong market positions in emerging markets, which should benefit from better demographic and demand trends over the long term but are also exposing Italcementi to increased political and country risks.

Weighing negatively on Italcementi's rating is its leverage, which Moody's said has weakened continuously during the last couple of years to a debt-to-EBITDA ratio of 5.1 times for the last 12 months ended June 2012.

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