S&P puts Elementia on watch

S&P said it placed the BB+ long-term corporate credit and issue-level ratings on Elementia SAB de CV on CreditWatch negative.

The recovery rating on Elementia's $425 million senior unsecured notes due 2025 is unchanged at 4 and indicates 30% to 50% expected default recovery.

The CreditWatch listing follows news that Elementia signed a letter of intent with Cementos Portland Valderrivas to acquire 55% of Giant Cement Holding, S&P explained.

The terms and conditions of the transaction are uncertain, although the company announced that the potential acquisition will be likely funded through an equity injection from existing shareholders, the agency said.

The deal is subject to certain conditions, including due diligences, final binding agreements and approval from U.S. regulatory agencies, S&P said.

The CreditWatch listing reflects the currently limited information regarding the details of the transaction, the agency said.

S&P said it is uncertain about the acquisition's effect on Elementia's credit protection measures, cash flow and liquidity.

© 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.