S&P rates Votorantim Cimentos notes BBB

Standard & Poor's said it assigned a BBB debt rating to senior unsecured notes to be issued by Votorantim Cimentos SA.

The notes will be guaranteed by parent company Votorantim Participacoes SA and by subsidiary Votorantim Industrial SA.

The issue rating is the same as the corporate credit rating on Votorantim Participacoes because of the guarantee provided by the parent companies and because Votorantim Cimentos is the group's largest cash-flow generator, S&P said, and because Votorantim Cimentos' indebtedness is fairly low.

The debt issuance is part of Votorantim Participacoes' liability management, aimed at extending its debt profile without adding additional leverage and improving its financial profile, the agency said.

The rating reflects the group's satisfactory business and intermediate financial profiles resulting from its leading market positions in most segments in which it operates, S&P said.

Partly offsetting the positives are the group's still-high revenues generation concentrated in Brazil and its aggressive growth strategy through acquisitions and organically, the agency added.

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