Fitch: Votorantim view negative

Fitch Ratings said it affirmed the ratings for Votorantim Participacoes SA and its subsidiaries Votorantim Industrial SA, Votorantim Cimentos SA, Companhia Brasileira de Aluminio and Voto-Votorantim Overseas Trading Operations IV Ltd. and revised the outlooks to negative from stable.

Fitch said the negative actions follow the Aug. 21 announcement by Votorantim that it indefinitely postponed existing studies between its subsidiary, Votorantim Financas, and Banco do Brasil that could have resulted in an increase in Banco do Brasil's participation in the capital of Banco Votorantim.

This announcement came on the heels of a decision by the company to postpone the IPO of its cement subsidiary, Votorantim Cimentos, which was targeted to raise R$10.3 billion.

Fitch said the postponement of these initiatives will delay the company's ability to reach a targeted net debt level of around 2x, an expectation that was built in the existing rating categories.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.