Moody's rates Votorantim notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the proposed up to €750 million seven-year senior unsecured notes to be issued by Votorantim Cimentos SA.

The outlook is stable.

The rating assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable.

The company's existing ratings are unchanged.

Moody's said the Baa3 ratings reflect primarily the company's leading position in the Brazilian cement market, strong credit metrics, adequate liquidity, as well as its large scale and integrated operations, that translates in leading market share and above-average EBITDA margins when compared to peers.

The ratings also take into consideration the company's affiliation with Votorantim Participacoes SA (Baa3; positive) and its relevance to the parent company Votorantim Industrial SA, as it contributes with 67% of total EBITDA generation (in 2013).

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