Fitch lowers Rinker to junk

Fitch Ratings said in a corrected rating that it downgraded Rinker Group Ltd.'s long-term issuer default rating to BB+ from BBB- and its short-term issuer default rating to B from F3 and will withdraw these ratings.

The agency failed to announce the downgrade of Rinker's issuer default ratings when it downgraded Rinker Materials Corp.'s $150 million senior unsecured notes due 2025 to BB+ from BBB- on Oct. 31.

The outlook is negative.

The downgrades were done in tandem with the downgrade of Cemex, SAB de CV, including its foreign- and local-currency issuer default ratings to BB+ from BBB-. The agency said the downgrade of Cemex reflects weaker-than-expected operating results and higher leverage levels than previously anticipated due to economic weakness in most of the company's important markets. At Sept. 30, the total adjusted debt-to-EBITDAR ratio was 4.8 times.

The ratings continue to consider the company's strong global business position as an integrated cement player, robust cash flow generation ability and good geographic diversification, 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.