Moody's rates Mills debentures Ba2

Moody's America Latina said it assigned a Ba2 global scale local-currency rating and an Aa3.br national scale rating to the proposed R$200 million five-year senior debentures to be issued by Mills Estruturas e Servicos de Engenharia SA. The corporate family rating remains Ba2 on the global scale and Aa3.br on the national scale, and the outlook is stable.

The agency said Mills' corporate family rating incorporates its strong operating margins, prudent financial management and leading position in the Brazilian concrete formwork and tubular structures sector backed by its longstanding relationship with the major local construction companies engaged in complex infrastructure, commercial, industrial and residential projects, supported by the offering of innovative solutions and updated technology.

Moody's said Mills' small size relative to global peers, high dependence on the cyclical construction industry and aggressive growth plans that include capital investments of R$231 million in 2014 are constraining factors to the rating.

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