S&P lowers Votorantim Cimentos stand-alone to BB

S&P said it affirmed the BB+ global scale and brAA+ Brazilian national scale corporate credit ratings on Votorantim SA.

The agency also said it affirmed the BB+ global scale corporate credit rating on Votorantim Cimentos SA because the cement division is considered the group's core subsidiary with both entities bearing the same default risk.

S&P also said it kept Votorantim's stand-alone credit profile at BBB and revised Votorantim Cimentos' stand-alone credit profile to BB from BB+.

The outlook remains negative.

S&P also said it affirmed the ratings on the debt issued or guaranteed by Votorantim and Votorantim Cimentos.

The recovery rating on this debt remains at 3, indicating 65% expected default recovery.

The negative outlook reflects the outlook on Brazil, S&P said.

The group's high sensitivity to domestic economy and its exposure to the banking business constrain the ratings on Votorantim to one notch higher than the foreign-currency rating on Brazil, the agency said.

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