S&P cuts Titan Cement

Standard & Poor's said it lowered the long- and short-term corporate credit ratings on Titan Cement Co. SA to BB+/B from BBB-/A-3. Ratings remain on CreditWatch with negative implications, where they were placed on Oct. 27.

The downgrade reflects the group's financial profile, which will considerably weaken this year compared with last year, the agency said.

Credit metrics will not significantly improve before 2010, the agency noted, given the ongoing market decline in Greece, an unlikely substantial recovery in the United States, eroding cushion provided by developing markets and impact of heavier interest charges.

Ratings consider the group's weak liquidity, limited size and geographic diversity, heavy outlays on expansion projects and acquisitions, and an aggressive financial profile, S&P added.

Ratings also reflect the group's still robust generation of cash, very strong market position in Greece, increasing geographic diversity toward non mature markets and overall healthy margins and return on capital, the agency said.

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