Moody's reviews Rinker

Moody's Investors Service said it placed the Baa2 rating of Rinker Group Ltd.'s 7.7% senior notes due 2025 under review for downgrade.

The review was prompted by the weaker-than-expected 2008 earnings guidance of Rinker's ultimate parent Cemex, SAB de CV, which could slow down the company's de-leveraging process and pressure liquidity given the material debt maturities over the next 18 months, according to Moody's.

Rinker's rating reflects Cemex's consolidated credit profile due to the companies' operational and financial integration and the cross default clauses in existing debt agreements, the agency noted.

For the 12 months ended March 31, Cemex's debt-to-EBITDA ratio pro forma for Rinker and adjusted for perpetual notes and off-balance sheet debt was about 4.7 times.

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