Moody's upgrades Votorantim Cimentos

Moody's Investors Service said it upgraded Votorantim Cimentos SA's corporate family rating to Ba1 from Ba2.

The agency also said it upgraded the senior unsecured notes issued by St. Marys Cement Inc. and Votorantim Cimentos International SA, unconditionally guaranteed by Votorantim Cimentos, to Ba1 from Ba2.

The outlook is positive.

St. Mary's Cement's $500 million senior unsecured notes due 2027 were upgraded to Ba1 from Ba2.

Votorantim Cimentos International's €650 million senior unsecured notes due 2021 were upgraded to Ba1 from Ba2, along with its €500 million senior unsecured notes due 2022 to Ba1 from Ba2 and $1.25 billion senior unsecured notes due 2041 to Ba1 from Ba2.

The upgrades are the result of Votorantim Cimentos' strong links to its parent company, Votorantim SA, along with the improvements in operating performance, credit metrics and capital structure, the agency said.

The upgrades also consider the company's increased share of revenues and assets outside of Brazil, which reduces the company's exposure to the Brazilian economy.

Votorantim Cimentos has a leading position in Brazil, solid liquidity, large scale and integrated operations and close links with Votorantim, which also just had a ratings upgrade, Moody's said.

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