Moody's lowers Rinker notes to Ba3

Moody's Investors Service said it downgraded Rinker Materials LLC's senior notes to Ba3 from Ba1.

This concludes the review for downgrade begun on Oct. 10, and the outlook is negative.

The agency said the downgrade reflects the unfavorable operating performance outlook for Rinker's ultimate parent, Cemex, SAB de CV, Cemex's high leverage and limited near- to medium-term prospects for debt reduction, as well as the potential for continued refinancing risk after the currently ongoing lender negotiations conclude. Moody's noted that Rinker's rating reflects Cemex's consolidated credit profile due to both companies' operational and financial integration and the cross-default clauses in Cemex's existing debt agreements.

Rinker's rating continues to reflect Cemex's strong business profile, with leading market positions and solid diversification across a number of major countries and product lines, the agency said.

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